Context: India's maritime sector is growing rapidly and playing an important role in the country's economic rise. In 2023, India contributed 16% to global economic growth and is expected to become the third-largest economy soon. As India’s global influence increases, its maritime sector (shipping, ports, etc.) is becoming a key part of its economic and strategic plans.

Key highlights

• The importance of India’s maritime sector was highlighted during the first edition of ‘Sagarmanthan: The Great Oceans Dialogue’ held in New Delhi.

• The 'Sagarmanthan' event was organised by the Ministry of Ports, Shipping & Waterways (MoPSW) and the Observer Research Foundation.

• It was aimed to encourage dialogue on sustainable development and the future of the maritime sector.

About India’s Maritime Sector

• India has a 7,500-kilometer coastline, with 12 major ports and over 200 minor ports, making it a key player in global shipping. About 95% of India’s trade by volume is handled through its ports, and 70% by value.

• Global Position: India ranks as the 16th-largest maritime nation in the world and is located along the world's busiest shipping routes. Many ships traveling between East Asia, America, Europe, and Africa pass through Indian waters.

• Growing Fleet: India has a fleet of 1,530 ships (as of 2023), making it a major player in global shipping. It is also the third-largest in the world for ship recycling, contributing to sustainable maritime practices.

• Port Infrastructure: The cargo-handling capacity of Indian ports has grown by 87% from 2014 to 2023. This is essential for supporting the nation’s expanding trade and economy.

• Government Role: The Indian government has supported growth in the maritime sector through initiatives like:

• 100% Foreign Direct Investment (FDI) for port projects.

• Tax holidays for port enterprises to encourage private investment.

Key Developments and Initiatives

• Port Efficiency: Indian ports have improved their efficiency. For example, in 2023-24, major ports reduced their container turnaround time to 57 hours, beating global benchmarks.

• New Shipping Fleet: India plans to create a new shipping company to expand its fleet by at least 1,000 ships in the next decade, which will help reduce foreign freight costs and increase trade.

• Paradip Port: This port became India’s largest by cargo volume in FY24, handling 38 million tonnes of cargo.

• Future Investments: The government plans to invest $82 billion in port infrastructure by 2035. A new port at Vadhavan, Maharashtra, with an estimated cost of $9.14 billion, is a key project.

• Green Shipping: The government is pushing for eco-friendly shipping practices. For example, the Green Tug Transition Program aims to replace traditional fuel-powered tugs at major ports with cleaner, sustainable options.

Major Government Schemes in Maritime Sector

• Sagarmala Programme: A key initiative to improve ports, enhance connectivity, and develop coastal areas. It focuses on port modernization, better roads and railways to ports, and increasing coastal trade.

• Maritime India Vision (MIV) 2030: A plan to make India a global maritime leader. It covers over 150 initiatives across 10 areas, including ports, shipyards, and inland waterways, to boost growth in the next decade.

• Inland Waterways: The government is working to develop 26 new national waterways to ease transportation and reduce congestion on roads and railways.