Economy

A robust maritime sector can steer inclusive development in India

Indigenous maritime sector requires a shift from current piecemeal policy architecture to a more holistic approach

 
By Mihir Prakash
Published: Thursday 13 July 2023
Photo: iStock.

Over 90 per cent of India’s trade (by volume) is conducted through the maritime domain. Yet the growth of India’s maritime sector has remained suboptimal. As  India’s consumer demand and production capabilities expand, maritime trade will become increasingly important for the country’s socio-economic prosperity.

It is vital that an indigenous maritime sector is nurtured to ensure that India’s growth remains resilient to supply chain disruptions. Establishing a robust indigenous maritime sector would require shifting from our current piecemeal policy architecture to a more holistic approach.

This approach would involve hand-holding for ship-builders and shipyards, reducing red-tapism at major ports and skill enhancement of personnel. It should go beyond the macroeconomic deliverables and also focus on ensuring social and ecological benefits.

For instance, targeted coastal industrialisation can generate employment for coastal communities, especially in less developed regions like coastal Andhra Pradesh.

A strong maritime sector with financially viable ports and indigenously built vessels will also provide a pathway for reforming India’s transport sector. Moving large volumes of goods through maritime assets can decongest the rail and road transport networks. Consequently, this will improve transport efficiency and reduce the economy’s carbon footprint.

On the political front, hundreds of rivers tie different states into a single eco-political unit. The development of these rivers holds great promise for the political economy of India’s hinterland and backward regions. For example, the Brahmaputra and its tributaries, with a basin of around 19,000 square kilometres, invigorate and bind six states in eastern India.

The systematic development of the 111 officially notified Inland National Waterways of India can provide a foundation for inclusive development. It will also promote solidarity by creating socio-economic linkages between different regions, similar to what the railways did in the nineteenth and twentieth centuries.

The potential of maritime affairs to connect people goes beyond domestic borders. Strong maritime connections with the country’s neighbours can help improve people-to-people contact, regional trade and net security.

Consequently, India should forge stronger maritime linkages with countries such as Sri Lanka, Bangladesh and Myanmar. Simultaneously, enhanced maritime security capabilities are necessary for protecting India’s strategic interests in the Indo-Pacific and beyond.

Targeted investments for the indigenisation of maritime defence assets are essential to address the ever-changing threats in the Indo-Pacific. These can be non-conventional (like piracy, narco-smuggling) or conventional threats (like coercion by a conflict nation).

A push for the sustainable development of the maritime sector backed by policy reforms and targeted investments will go a long way. It will strengthen the Indian economy, improve inter-regional and intra-regional unity and solidify India’s credentials as a net security provider in the Indian Ocean region. 

Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth.

The author works in the maritime industry & has a keen interest in developmental affairs.

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