India’s Maritime Sector: Historic Transformation

Why in News?

• Prime Minister Narendra Modi addressed the Maritime Leaders’ Conclave at India Maritime Week 2025 (Mumbai).
• Announced ₹2.2 lakh crore worth of initiatives for shipping, shipbuilding, and port-led development, including acquisition of 437 vessels.
• Stressed that India’s maritime capacity has doubled, and cargo movement in inland waterways has risen 700%.

Relevance

• GS Paper 3 – Infrastructure & Economy: Ports, shipping, inland waterways, logistics efficiency, Sagarmala, and Blue Economy.
• GS Paper 2 – Governance/Policy: Maritime policy reforms, PPP models, and environmental sustainability in port operations.
• GS Paper 2 – IR: Strategic maritime connectivity through BIMSTEC, IORA.

Background: Maritime Significance

• India’s 11,098 km coastline, 200+ ports, and 12 major ports form the backbone of trade—handling ~95% of India’s trade by volume and ~70% by value.
• The Sagarmala Programme (2015), Maritime India Vision 2030, and Amrit Kaal Vision 2047 aim to position India as a global maritime hub.

Key Announcements at the Conclave

• Investment Outlay: ₹2.2 lakh crore for modernization, shipbuilding, and port digitization.
• Fleet Expansion: Procurement of 437 vessels under Make in India to enhance coastal and international shipping capacity.
• Digital & Legal Reforms:
  • Introduction of modern, futuristic maritime laws replacing outdated colonial-era acts.
  • Focus on port sustainability, digitization, and safety enhancements.
• PPP Model Strengthening: Increased participation of private players in port operations and logistics.
• Financial Reforms: New credit and financing alternatives for shipbuilding and allied industries.

Major Achievements Highlighted

Indicator	Progress Achieved
Port Capacity	Doubled since 2014; JNPT now India’s largest container port.
Inland Cargo Movement	Increased by 700%, reflecting success of National Waterways policy.
Global Recognition	India’s ports rated among best in the developing world.
Logistics Performance Index (World Bank)	Significant improvement — India ranked 38th in 2023 (up from 54th in 2014).
Global Engagement	Participation from 85 countries at Maritime Week 2025, making it a global summit.

 Institutional & Infrastructure Advances

1. Vizhinjam Deep Water Transshipment Port (Kerala)
   1. India’s first deep-water container hub, operational in 2025.
   2. Reduces dependence on Colombo/Singapore for transshipment.
2. JNPT (Mumbai)
   1. Handling capacity doubled, significant automation and digitization achieved.
3. Kandla Port (Deendayal Port, Gujarat)
   1. Emerging as a leading dry cargo port under Sagarmala initiatives.
4. Inland Waterways Development
   1. Operationalization of National Waterway-1 (Ganga) and multimodal terminals under Jal Marg Vikas Project.

Policy and Reform Landscape

• Sagarmala Programme (2015):
  • Port modernization, connectivity, industrialization, and coastal community development.
  • ₹6.5 lakh crore worth of projects identified; over 200 completed.
• Maritime India Vision 2030:
  • Aims to reduce logistics cost to 8–9% of GDP (currently ~13%).
  • Targets 400 MTPA additional port capacity and 5 million direct jobs.
• Harit Sagar Guidelines (2023):
  • Promote green shipping, renewable port operations, and waste-to-wealth initiatives.
• Shipbuilding Financial Assistance Policy (2024–31):
  • Provides subsidies to boost domestic shipbuilding capacity.

Strategic & Geoeconomic Importance

• India’s maritime sector underpins the Blue Economy, contributing ~4% of GDP.
• Strengthens India’s role as a “lighthouse economy” amid global trade disruptions.
• Enhances energy security through port-based LNG terminals and coastal shipping.
• Supports Atmanirbhar Bharat via localized ship design, construction, and repair facilities.

Challenges

• Global Competition: China, Singapore, and UAE dominate transshipment markets.
• Logistics Costs: Still higher than global average (~13% vs. global 8–9%).
• Technological Lag: Need for greater automation, AI-driven port management, and cyber-resilience.
• Environmental Concerns: Marine pollution, dredging impacts, and carbon emissions remain issues.

Way Forward

• Integrated Maritime Strategy 2047: Aligns security, sustainability, and growth goals.
• Blue Economy 2.0 Framework: Focus on deep-sea mining, green ports, and circular economy.
• Regional Cooperation: BIMSTEC and IORA to enhance maritime domain awareness and connectivity.
• Skill Development: Maritime Skill Councils and specialized training in shipbuilding and ocean engineering.

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