Maritime Sector in India

Context: India’s maritime sector has become a cornerstone of the country’s economic resurgence. However, to harness its full potential, the maritime sector would need an investment of $1 trillion by 2047 and ₹5 lakh crore by 2030.

Overview of India's Maritime Sector

• Backbone of India’s trade and commerce, handling around 95% of India’s trade by volume and 70% by value. 
• Port Infrastructure: 13 major ports and over 200 notified minor and intermediate ports. 
• India is the 16^th largest maritime nation in the world.
• India occupies a key position on global shipping lanes.
  • Most cargo ships traveling between East Asia and destinations like America, Europe, and Africa traverse Indian waters, highlighting India’s strategic importance.

Strengths of India’s Maritime Sector

• Aligning with Hong Kong Convention on Ship Recycling:
  • Indian recycling yards at Alang are compliant with the Convention’s standards. This positions India as a global ship recycling market.

• Port Capacity:
  • India’s major ports are handling 820 MMT of cargo annually, which is a 47% growth since 2014. 
  • The overall port capacity has doubled to 1,630 MMT during the same period.
  • India’s port capacity is expected to increase six-folds to 10,000 MT per annum by 2047. This would make India one of the top 10 maritime countries in the world.
• Mega Ports:
  • Jawaharlal Nehru Port, India’s largest shipping facility, has crossed 10 million TEUs (twenty-foot equivalent units) container handling capacity. 
  • Vadhavan Port in Maharashtra is set to become India’s largest container facility.
  • The proposed International Container Transshipment Port at Galathea Bay, Great Nicobar would capture transshipment trade along key global routes.
• Modernisation driving efficiency gains:
  • According to the World Bank’s Logistic Performance Index (LPI) Report 2023, India is ranked 22nd in the “International Shipments” category, from the 44th position in 2018.
  • Operational Efficiency: 
    • Container dwelling time has now reduced to three days.
    • Vessel turnaround time has improved to 0.9 days.
  • Nine Indian ports feature in the World Bank’s Container Port Performance Index 2023. Visakhapatnam ranks among the top 20 globally.

Key Initiatives

• Maritime India Vision (MIV) 2030: Accelerate growth of India’s maritime sector by developing world-class Mega Ports, transhipment hubs and infrastructure modernisation of ports. 
• Sagarmala Programme:
  • Flagship initiative by the Ministry of Ports, Shipping, and Waterways.
  • Aimed at driving port-led development through harnessing India’s 7,500 km long coastline, 14,500 km of potentially navigable waterways and strategic location on key international maritime trade routes.
  • Vision: Development of port infrastructure projects, coastal development, connectivity enhancement and reducing logistics cost. 
• Inland Waterways Development:
  • The Inland Waterways Authority of India (IWAI) has identified 26 new national waterways, following feasibility studies to make them navigable. 
  • These new routes will provide an alternative mode of transportation, easing the load on congested road and rail networks and promoting sustainable, cost-effective transport options. 
• Major Port Authorities Act, 2021 which grants greater autonomy to major ports.
• Decarbonisation of Shipping sector: Initiatives to establish green hydrogen production hubs at Paradip, Tuticorin and Kandla ports.
• Green Tug Transition Program (GTTP):
  • Aims to phase out conventional, fuel-based harbour tugs at Indian major ports.  These will be replaced with tugs powered by cleaner, sustainable fuels. 
  • The transition is set to be completed by 2040, ensuring a fully eco-friendly fleet across the country’s major ports.
• National Logistics Portal (Marine): It is a single-window digital platform for all stakeholders including those engaged in cargo services, carrier services, banking and financial services, and government and regulatory agencies. 
• Sagar Setu App: It facilitates seamless movement of goods and services in ports while substantially enhancing the ease of doing business.

Challenges

• Infrastructural Issues: 
  • Port Congestion: Lack of equipment for managing the number of containers, ineffective operations, contribute to port congestion. 
  • Sub-optimal Transport Modal Mix: This is due to a lack of the infrastructure required for evacuation from both large and minor ports.
• Adoption of sustainable fuel for transitioning to net-zero emissions. 
• Spills or leaks from cargo loading and unloading and pollution from oil spills are widespread during port operations.
• Availability of skilled labour for shipbuilding and repairs work. 
• Port development initiatives often result in the displacement of people. E.g., Mundra in Gujarat, Gangavaram Port in Andhra Pradesh.