Investment Requirement for India’s Maritime Sector

India's maritime sector is poised for significant growth, with the Union Ministry of Ports, Shipping & Waterways estimating that India will need an investment of USD 1 trillion by 2047 and ?5 lakh crore by 2030 to fully harness its potential. This investment is crucial to make India one of the top 10 maritime countries in the world by 2047.

India’s Maritime Sector Overview

• India is home to 12 major ports and over 200 minor ports. As 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.
• India’s maritime sector is the backbone of its international trade, handling:
  • 95% of India’s trade by volume.
  • 70% of India’s trade by value.
• Key Stats:
  • 1,530 ships under India’s flag in 2023.
  • India is the third-largest global ship recycler by tonnage.
  • India’s growing presence in global shipping and its expanding port infrastructure have contributed significantly to its economic growth. From 2014-15 to 2023-24, India’s major ports increased their cargo handling capacity by 87%, from 52 MT to 1,629.86 MT.

Key-Transformation in the maritime sector

• Green hydrogen production hubs are being established at Paradip, Tuticorin, and Kandla ports. These hubs will contribute to reducing carbon emissions from the maritime sector.
• Ship Recycling and the Hong Kong Convention: India is poised to become a global leader in ship recycling. The Hong Kong Convention on Ship Recycling is set to come into effect in June, and India is already compliant with the Convention’s standards.
  • Alang Shipyards in Gujarat are among the largest and most advanced in the world for ship recycling, positioning India as the global hub for ship recycling.
• Port Capacity Expansion: India’s port capacity will increase sixfold by 2047, aiming to reach 10,000 Million Tons (MT) per annum.
  • Current Port Capacity: India’s major ports are already handling 820 Million Metric Tons (MMT) of cargo annually, showing a 47% growth since 2014.
  • Paradip Port became the largest major port by cargo volume, handling 145.38 million tonnes in FY24.
  • Future Plans: The Vadhavan Port (Maharashtra) is set to become India’s largest container facility. Also, the International Container Transshipment Port at Galathea Bay (Great Nicobar) will help capture transshipment trade along key global routes.
• Efficiency Gains in Port Operations: India has made significant improvements in port operations:
  • Container Dwelling Time: Reduced to 3 days.
  • Vessel Turnaround Time: Improved to 9 days, surpassing the performance of several advanced economies.
  • Global Recognition: Nine Indian ports now feature in the World Bank’s Container Port Performance Index 2023, with Visakhapatnam ranked among the top 20 globally.

Challenges in Shipbuilding and Repair

While India’s maritime sector is growing rapidly, there are challenges in the areas of:

• Skilled Labour: There is a shortage of skilled workers for shipbuilding and repair.
• Sustainable Fuel: Adoption of sustainable fuel is crucial for transitioning to a net-zero emissions future in the maritime industry.