India’s maritime economy: pexpansionropelling the country’s

Overview

India’s rich maritime tradition, which dates back 5000 years, serves as more evidence of the marine domain’s significance for the country’s security, stability, economic prosperity, and sustainable development. The oldest drydock in the world, which originated with the Harappan civilization, was discovered during an excavation in Lothal. India is aiming for USD 25 billion from the maritime zone[i], in line with the worldwide benchmark of roughly 5%, as it is on the verge of becoming a global economic powerhouse in the twenty-first century and has set a goal to become a USD 5 trillion economy by 2025. The maritime industry will play a significant role in reaching the goal of a USD 10 trillion GDP by 2032.

The Maritime Credentials of India

India is really a marine nation, despite its peninsular geographic configuration and its mostly continental outlook brought on by its obsession with its northern and western neighbors. The nation boasts a 7516.6-kilometer porous coastline and an Exclusive Economic Zone (EEZ) that is more than 2.37 million square kilometers. kilometers, where India has the sole legal authority to use all resources, including living and non-living. Over 200 million people rely on the sea for their livelihood and nourishment, while the waters of the Indian Ocean, the Bay of Bengal, and the Arabian Sea wash over nine states and four union territories. A network of 12 main ports and 205 notified minor and intermediate ports support the approximately 95% of India’s trade by volume and 74% by value that passes over the sea. There are two strategically placed island territories inside the nation. The eastern seaboard of the Andaman and Nicobar archipelagic group, which consists of 572 islands, including 38 that are permanently inhabited, is roughly 750 miles from the Indian mainland, whereas the west coast of India is roughly 200 nautical miles away from the group of 38 islands known as the Lakshadweep.

India’s energy security, which directly affects the nation’s economy, depends on the maritime sector as well. Over 50% of India’s gas and over 80% of its oil come from overseas and are transported over the ocean. The Arabian Gulf is the source of more than 60% of this. The majority of India’s vital energy infrastructure is situated on the shore or afloat, making it more vulnerable to the sea on the domestic front as well.

In 1987, India became the first nation to be granted pioneer investor status, and it was awarded a 150,000 square foot exclusive area. km of the Central Indian Ocean Basin for polymetallic nodule development and exploration by the International Seabed Authority. Currently, 75,000 square feet are being used to abuse these rights. area in kilometers.[ii]

Aiming for Maritime Domination

India is fortunate to have a strategic location in the middle of the Indian Ocean. Its peninsular tip borders some of the world’s most important shipping lanes and protrudes nearly a thousand miles into the ocean. It must take use of its size and economic prominence to become the dominant force in the Indian Ocean region and to become a major maritime force on a worldwide scale. Its highly skilled blue water fleet, which is currently the fifth largest in the world, is the foundation of its standing as a maritime power. This is only one aspect of maritime strength, but it is the most significant. India still needs to improve in the majority of non-military maritime power areas, though, as these are essential for a strong maritime economy.

In his groundbreaking essay, “The Influence of Sea Power on History,” Alfred Thayer Mahan, the father of naval strategy, enumerated six crucial characteristics of a maritime force, which he called “sea power” but which essentially means the same thing. These factors—geographic location, physical qualities, territorial extent, population number, and the nature of the government—remain as significant today as they did back then and are the very traits that affect how a maritime economy develops.

Despite having all of these in large quantities, India has not yet achieved the status of a maritime power. Maritime dominance has always been the secret to world dominance. Because of their dominance of the water, little European nations were able to build worldwide empires, and the survival of the fittest was determined at sea. India offers a prime illustration. The Dutch, French, and British followed the Portuguese in the quest for dominance after Vasco da Gama’s historic landing at Calicut on May 20, 1498, which opened the floodgates to India’s wealth. India became the jewel in the crown of Great Britain’s empire, which lasted forever, thanks to its superior naval might. Following World War II, Pax Britannica gave place to Pax Americana, which persists today due to its dominance in terms of economy, technology, and naval force. With its “Mahanian” approach to global dominance through maritime power, China has become a major global maritime power in less than 70 years and is well on its way to establishing Pax Sinica by 2049, the centennial year of the Cultural Revolution and a date set in stone by Chinese President Xi Jinping.

China has the largest navy (numerically), the largest coast guard, the largest maritime militia, the largest fishing fleet, the largest merchant fleet, the largest shipbuilding industry, seven of the ten largest and busiest ports in the world, and more—this is despite China’s disadvantage in its approach to the sea. Not only has China made significant investments in developing this remarkable capability, but it has also given a maritime orientation to its historical narrative by elevating the eunuch Admiral Zheng He and his expeditions into a sort of legend. Its ambitious Belt and Road Initiative (BRI), which is unprecedented in scope and ambition, is obviously intended to reorient the current global western rules-based maritime order into one with “Chinese characteristics.” In a country that was hardly able to protect its own maritime borders until forty years ago, this maritime sensibility is being successfully ingrained. China’s all-encompassing maritime strategy aims to further both its political aspirations and its maritime economy. It will have access to marine resources well beyond its own maritime borders if it can control the waters of its interest and influence in nations where it is expanding its economic might (debt trap?).

India, on the other hand, has fallen far behind in developing its marine industry despite having a strong nautical heritage and a strategic location in the Indian Ocean. There are lessons to be learned, even though a comparison with China would not be realistic given how different the situation is there compared to India. A defined goal, a long-term commitment to policy, the ability to adjust to a changing environment, and the perseverance to reach the intended end-state are all necessary for the development of a maritime economy. Systemic inefficiencies slowed the effort and caused India’s maritime economy to lag behind in practically every metric. The post-independence port and shipping infrastructure, which is primarily state owned, could have served as the impetus for the maritime economy to become a part of India’s growth story.

Change-Propelling Winds

However, Prime Minister Modi’s first out-of-office visit since taking office in May 2014 to the Indian aircraft carrier INS Vikramaditya, where he spent time at sea observing the Western Fleet being tested, made the winds of change clear. In recognition of India’s progress in producing its own warships, he soon put into service the guided missile destroyer, INS Kolkatta, which was manufactured in the country. The Prime Minister presented his vision for SAGAR (Security And Growth for All in the area) during his March 2015 visit to Mauritius. SAGAR aims to build regional capability for the mutual benefit of India’s critical neighbors and the greater Indian Ocean area. Those who were complaining about the neglect of the maritime area found solace in SAGAR’s unique maritime orientation, which is the Hindi word for ocean. More than 50 navies took part in the nation’s International Fleet Review, which was held at Visakhapatnam in February 2016. This demonstrated India’s significance as a naval force in line with its rising international prominence. In an effort to revitalize India’s maritime industry, the nation organized a Global Maritime Summit in Mumbai two months later, in April 2016.

Over 5000 representatives from 42 nations attended the summit, and transactions of Rs 82,905 crore were made. The Sagarmala program, a multi-billion rupee project spearheaded by port development and intended to revitalize and modernize India’s maritime infrastructure, was unveiled during this summit. In actuality, this effort establishes the framework for the growth of India’s maritime industry. This flurry of action during the first two years of the current government’s tenure demonstrated its sincere desire to give this sector the attention it deserves.

SAGARMALA

The “Maritime Agenda 2010-2020” came before the Sagarmala Initiative. In addition to highlighting the significance of the maritime industry for India’s economic development, this document issued by the UPA Government also outlined a comprehensive roadmap with specific goals to be met by 2020, though it included a disclaimer that these could alter based on the years and the situation. The report card is not encouraging and has sadly fallen short of the planned objectives across the majority of the sectors listed in the document as 2020 draws to a close. Many of these goals were incorporated into the Sagarmala initiative, which is still ongoing five years later. Modernizing the current port infrastructure, constructing new ports, increasing port capacity through enhanced efficiency, best practices, and technology, lowering freight transportation costs by creating a vast network of inland waterways, fostering the growth of coastal communities, and developing the necessary skill sets to create jobs in the maritime industry are all part of Sagarmala.

In the categories of port modernization (236 projects), port connectivity (235), port-led industrialization (35) and coastal community development (68), over 574 projects (costing Rs. 6.01 lac crore) have been identified for implementation between 2015 and 2035 as part of the Sagarmala Programme. A total of 493 projects were either in development (137), under implementation (235), or completed (121) as of September 30, 2019 .

According to Director General of Shipping Shri Amitabh Kumar, who spoke on the first day of the two-day Inmex SMM Virtual Expo in November 2020, the government announced at the end of 2020 that it would be releasing a document called “Maritime Vision 2030,” which “will remain dynamic over the next decade, changing its contours with time, and adapting to situations that may arise, and keeping abreast of developments.”

The 2030 Maritime Vision

Additionally, the DG Shipping emphasized that this vision will be developed on four limbs, which are emphasized by the Sagarmala vision’s overarching goal of establishing a series of extremely productive and efficient ports along the Indian coastline. The first limb, port development, has lagged in this nation; none of the main Indian ports are among the top 25 worldwide. Even the most basic port infrastructure needed to handle and tranship inland and coastal waterway freight is lacking in many of the 205 non-major ports. The Vision calls for doubling port capacity to 2600 million tonnes, which is still less than the amount specified in the previous marine agenda but considerably more feasible given the advancements of the past few years. Although the two large ports listed in the previous agenda have not yet come to fruition, it also envisions the establishment of three significant ports.

The second leg has also been identified as inland waterways and coastal shipping. The cleanest and most cost-effective way to move products is by water, and India’s extensive network of interior waterways can be a useful resource for linking the country’s vast hinterland to its coastal port network. The third key priority area is shipbuilding, which has been recognized as a national asset. The goal is to expand the number of ships flying the Indian flag. The fourth leg to address the need for skilled individuals over the next ten years is maritime training. 9.35% of all sailors worldwide are Indian [vi], which is consistent with the 9% target set forth in the Maritime Agenda 2010-2020.

In order to offer the necessary financial boost and a strong regulatory framework that is more appropriate for the modern world than the outdated current regulations, the Vision also calls for the establishment of a Rs 25,000 crore Maritime Development Fund.

The Aspect of Security

Due to the rapid growth of the economies of East and South East Asia and the rising of China and India, the geopolitical and economic center of gravity has shifted to the East over the past 20 years, drawing attention to the Indo-Pacific region. About 65% of the world’s population lives in this region, which also produces 62% of the global GDP and 46% of global trade. [vii] China has been the first to take advantage of this region’s potential; its claims to the South China Sea, its attempt to control the East China Sea, its aggression in the Taiwan Straits, and its growing influence in the Indian Ocean are all part of its broader global strategy of military intimidation to achieve economic dominance through maritime superiority. India must devise a long-term plan to thwart any Chinese attempts to establish a dominant presence in the Indian Ocean generally, but particularly in India’s strategic maritime neighborhood, as a significant Chinese maritime presence in the Indian Ocean would have grave security and economic ramifications for India.

There is ample proof that China’s massive fishing fleets engage in illegal, unreported, and unregulated (IUU) fishing in the Indian Ocean, in addition to the PLA Navy’s constant presence there, which will only grow as it gains more force projection capabilities. In order to better comprehend these waters for both military and commercial purposes, their research ships are regularly spotted doing oceanographic study in the eastern Indian Ocean. In 2019, one such vessel was ejected from the eastern Indian Ocean by India. India must take the initiative to strengthen its strategic neighborhood through inclusive and cooperative capacity and capability building initiatives, but as long as this presence persists in international waters, there is little it can do legally. This will ensure that its own economic and security interests, as well as those of its maritime neighbors, are adequately protected.

Through arms supplies and economic incentives including infrastructure upgrades, China has been aggressively pursuing its military and economic diplomacy in the area. India is clearly unable to match China’s economic might, but its engagement with its neighbors has shown promising outcomes thanks to a thorough and proactive all-of-government approach that makes efficient use of its soft and sharp power. Consolidating the previous gains and dispelling myths about India’s big brother approach has been made easier by recent government senior official visits to the majority of the neighboring countries, the NSA level India-Sri Lanka-Maldives trilateral meeting, the inclusion of the neighboring countries in the coastal security network, the start of information-sharing mechanisms, and the expansion of economic engagement through connectivity initiatives and advantageous trade agreements.

The Prime Minister’s personal commitment to the region to promote an inclusive and cooperative relationship for mutual economic benefit was demonstrated by his invitation to the SAARC Heads of Government during the swearing-in of the NDA government in May 2014 and the BIMSTEC Heads of Government during the swearing-in following the election victory in May 2019. The trust and certainty that India will support their economic development through an inclusive manner has been greatly enhanced by a number of socio-economic capacity building initiatives. Economic development and security are closely related, which emphasizes the significance of the SAGAR (Security and Growth for everyone in the Region) ideology. As the provider of net security in the Indian Ocean, India is tasked with making sure that the region’s marine economy continues to provide economic advantages.