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India's Maritime Sector Needs $1 Trillion Investment by 2047 to Unlock Full Potential

23-01-2025

05:47 AM

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India's Maritime Sector Needs $1 Trillion Investment by 2047 to Unlock Full Potential Blog Image

India's Maritime Sector Latest News

  • According to the Secretary, Union Ministry of Ports, Shipping & Waterways, the Indian maritime sector requires $1 trillion by 2047 and ₹5 lakh crore by 2030 to realize its full potential.

India’s Maritime sector 

  • India's 7,500-kilometer coastline, with 12 major ports and over 200 minor ones, positions it as a vital trading hub along the world’s busiest shipping routes. 

Overview of India’s Maritime Sector

  • India’s maritime sector handles 95% of trade by volume and 70% by value, with 12 major ports and over 200 minor ones anchoring the economy. 
  • With an 87% increase in cargo-handling capacity since 2014-15, India managed 819.22 million tonnes of cargo in FY24, reflecting its growing prominence. 
  • Policies like 100% FDI and tax incentives have further strengthened the sector.

Key Developments in the Maritime Sector

  • Efficiency Gains: Reduced container turnaround time to 22.57 hours in 2023-24.
  • Fleet Expansion: Plans for a new shipping company to add 1,000 ships by 2047.
  • Paradip Port Milestone: Became India’s largest port in FY24, handling 145.38 million tonnes of cargo.
  • Massive Investments: US$ 82 billion allocated for port infrastructure by 2035.
  • Vadhavan Port: Approved at ₹76,220 crore, aiming to boost EXIM trade.
  • Shipbuilding Assistance: Financial aid under SBFAP has secured 313 vessel orders worth ₹10,500 crore.
  • Panch Karma Sankalp: Focus on green shipping, digitization, and smart port development.

Government Schemes Supporting Maritime Growth

  • Several government schemes have been launched to modernize infrastructure, enhance port connectivity, and promote sustainability in the sector.

Sagarmala Programme

  • Promotes port-led development, with ₹3,714 crore sanctioned for 130 projects focused on coastal berths, connectivity, fish harbors, and Ro-Pax services.

Maritime India Vision (MIV) 2030

  • A 10-year roadmap with 150 initiatives across ports, shipyards, and inland waterways to establish India as a global maritime leader.

Inland Waterways Development

  • Plans to make 26 new national waterways navigable, easing road and rail congestion while promoting sustainable transport.

Green Tug Transition Program (GTTP)

  • Aims to replace conventional tugs with eco-friendly alternatives by 2040, ensuring a sustainable future for Indian ports.

Investment Required to Transform India’s Maritime Sector - Key highlights

  • The Secretary to the Union Ministry of Ports, Shipping & Waterways said that the Indian maritime sector would need an investment of $1 trillion by 2047 and ₹5 lakh crore by 2030 to harness its full potential. 
  • He was speaking at the FICCI Maritime Conference and Expo 2025 in Mumbai.

Green Hydrogen Production Hubs

  • Green hydrogen production hubs will be established at Paradip, Tuticorin, and Kandla ports to decarbonize the shipping sector.

India as a Global Ship Recycling Market

  • The Hong Kong Convention on Ship Recycling, effective from June, will benefit Indian shipyards.
  • Recycling yards in Alang already comply with the Convention's standards, positioning India as a global leader in ship recycling.

Maritime Sector's Contribution to Economic Growth

  • India’s maritime sector is central to the country's economic resurgence, with port capacity expected to increase sixfold to 10,000 MT per annum by 2047.
  • Major ports are currently handling 820 MMT of cargo annually, marking a 47% growth since 2014.
  • Overall port capacity has doubled to 1,630 MMT during the same period.

Development of Mega Ports

  • India has entered the era of mega ports, with key developments such as:
    • Vadhavan Port (Maharashtra): Set to become India’s largest container facility.
    • Galathea Bay (Great Nicobar): International Container Transshipment Port to capture global trade routes.

Efficiency Gains in Port Operations

  • Container dwelling time has reduced to three days.
  • Vessel turnaround time has improved to 0.9 days, surpassing several advanced economies.
  • Nine Indian ports are featured in the World Bank’s Container Port Performance Index 2023, with Visakhapatnam ranking in the global top 20.

Challenges highlighted

  • Experts at the event highlighted challenges in skilled labor availability and sustainable fuel adoption for net-zero emissions.

Report launched

  • A FICCI-CRISIL report titled ‘Forging New Horizons: The Growth of India’s Shipbuilding and Repair Industry’ was unveiled.
  • The report showcased India's potential to become a leading hub for shipbuilding and repairs.

India's Maritime Sector FAQs

Q1. Which is the largest shipping industry in India?

Ans. Paradip Port is the largest, handling 145.38 million tonnes of cargo in FY24.

Q2. What are the types of maritime sectors?

Ans. The maritime sector includes ports, shipping, shipbuilding, inland waterways, and coastal trade.

Q3. What is the future of the shipping industry in India?

Ans. India aims to invest $1 trillion by 2047, expand capacity, and focus on sustainability, efficiency, and green initiatives. 

Q4. What is the maritime sector of India?

Ans. India's maritime sector manages 95% of trade by volume, supported by 12 major ports and 200+ minor ports.

Q5. What is Maritime India Vision 2030?

Ans. MIV 2030 is a 10-year roadmap with 150 initiatives to make India a global maritime hub.

Source :TH; PIB