Cruising ahead: On the India Maritime Week event Politics & News

The India Maritime Week event, headlined by Prime Minister Narendra Modi, signalled government recognition that shipping is not just a business but a business with a strong strategic component. The Indian shipping sector had declined considerably over nearly two decades under the ideological framework of liberalisation, privatisation and globalisation, which weakened government support and diluted strategic intent for shipping. Barring port infrastructure, the Indian government seemed keen largely only on training and educating sea-farers so that they could continue to serve on foreign ships and bring in foreign exchange. The state-owned Shipping Corporation of India (SCI), once a global leader in ship ownership, was allowed to decline. Favourable government policies, such as giving the company first rights to transport India’s oil, were withdrawn in the name of a level playing field and SCI barely escaped privatisation. But COVID-19 was a rude awakening. With India depending heavily on foreign-owned ships, it had little leverage to intervene in its own trade. Private Indian shipping was too small to step up fully. Post-pandemic, the government has realised that shipping, though a business, has much strategic importance, especially during times of disruption, war, and where protectionism and resurgent national interests of western countries rule trade. Recent government initiatives have sought to beef up the SCI’s fleet strength.

A major part of the lakhs of crores of rupees in investments announced at the maritime week was port-related. The government has been running its ports under a landlord model, sharing revenue with private and foreign companies for terminal operations, which are now a target of investors. This has given the ports financial heft to embark on new projects — the Chennai and Kolkata ports, for instance, have taken up the transshipment hub project in the Andamans. Investments are also seen in port connectivity, Sagarmala projects, and Indian seafarer training. Another major push has been to have foreign shipping companies register their ships in India through their local subsidiaries, which would give the Indian government leverage over them for serving Indian needs as well as support allied businesses such as insurance. But movement is still barely visible in Indian merchant shipbuilding, where greater progress would have signalled industrial, technical, and project management expertise in heavy industry. The day that Indian shipyards quickly roll out state-of-the-art LNG ships or futuristic green fuel burning vessels, Indian shipping will be truly cruising full ahead.