Unlocking India’s Potential in the Maritime Economy
A transformation can be noted in the Indian Ocean winds, which have been blowing in the same direction for years. Historically, our seas were a source of living for the inhabitants of the regions, a passage for the spice traders, and a place that opened up the wonders of the East. However, a change has taken place along the 7,517 km-long stunning coastline of India that is different. The sound of the waves is not the only thing that is heard; there is also the sound of powerful engines, the noise of cranes, and the lively atmosphere of a country that is gradually getting to the point where it’s public that India is a maritime superpower and that the whole thing is very thrilling.
We are going through a renaissance, a change from just possessing a shoreline to being the front line of international trade. And the story of India’s maritime economy in 2024 is the tale of our unlocking a blue economy that is going to shape our future. Therefore, let’s get on the boat and sail through the exhilarating streams of this sector’s growth, which is powered by overwhelming data and a dream that goes way beyond the horizon.
The Pulse of Trade: Breaking Records at Our Ports
Let’s start with our ports. You would be wrong if you think ports are only places for ships to park temporarily. Instead, they are the very busy and hot-flowing sectors of our economy.
The financial year 2024 has been one of the most wonderful years for the twelve major government union ports. Just to give you an idea: within a year, these ports saw an enormous figure of 819.227 million tonnes (mt) of cargo handled. This is a stunning hike of 4.45% compared to last year’s 784.305 mt. Keep in mind that our ports are responsible for about 95% of the total volume of India’s international trade.
The most thrilling part of all is what we are trading. The ever-increasing demand of a developing India is represented by every container and every bulk carrier. The quantities of iron ore, which is the primary construction material, have astonishingly risen by 32.68% to 61.031 million tonnes. India is a land of construction and manufacturing, and ports are a major factor in this. The energy sector, too, has linked its fortunes with the coal importers, as coking and thermal coal imports rose more than 10% to 64.939 mt.
One of the port authorities leading this growth movement, the Paradip Port Authority, has transformed itself from a regional player to a global giant by effecting an increase of 7.40% in the volume of cargo to 145.379 million tonnes and thus becoming the largest port in the world. Meanwhile, on the container side, the Jawaharlal Nehru Port Authority (JNPA) is almost solely responsible for the entire country’s containerised trade, handling over 50% of the total volume with 6.43 million TEUs. They are not only logistics centres but also success stories.
The Armada: India’s Giant on the Water
The seaports are only one part of the total picture. Ships are the ones that actually connect a maritime economy with the outer world through the high seas. And speaking of ships, our fleet has really grown a lot!
If we turn the pages back to the very first year of our independence in 1947, our total shipping tonnage was just 0.19 million Gross Tonnage (GT), and there were only a few vessels that fitted that weight. Go ahead to the present day, and the change is nothing less than astonishing. The latest statistics about Indian shipping say that as of December 31, 2024, the strength of our merchant fleet is 1,545 vessels with a total of 13.50 million GT. This shows an increase of 80 times in tonnage since independence. It is undoubtedly a testament to our unwillingness to settle, our eagerness to grow and our capacity to rule the waters.
What does India’s armada look like?
Even though we generally notice the huge container vessels, have you ever thought that oil tankers are the giants of our fleet? They are the unquestioned rulers in the matter of capacity, and they represent 56.1% of the gross tonnage of India, which is approximately 7.58 million GT. This brings us to a very important point: India is not playing games with its energy security. The situation is that we are creating the capability to transport our own energy.
Moreover, there is an interesting division in the way we conduct our operations. Besides the 1,056 ships that make up our large domestic fleet working day and night relentlessly along the coast to facilitate domestic logistics, the real heavyweight only happens overseas. Our overseas fleet, which consists of 489 vessels, may be fewer in number, but it accounts for 88% of the total tonnage we possess. This indicates that the most powerful and biggest vessels are in the deep blue, where they are allowed to fly the Indian flag and are thus engaged in the global trade routes.
The Contributions of Corporate Players
Public power and private enterprise are the driving forces of the Indian maritime sector. The Shipping Corporation of India (SCI) is currently the largest state-owned company in India. Evolving from a small shipping line in 1961, possessing 19 ships, SCI has gradually come to be regarded as the country’s premier shipping line. With a total of 63 vessels and an astonishing registered tonnage of almost 2.97 million GT, SCI is now the proud owner of this massive fleet. The tonnage operated and owned by SCI alone is approximately 25% of the total Indian fleet. Their areas of operation are numerous: they have break-bulk services, international container services, liquid/dry bulk, and offshore services. Our maritime presence is largely due to them.
However, the private sector is not just watching from the sidelines. Indian shipping companies have had a great financial year, 2023-24, proving that the blue economy is also a green economy (in terms of money). One of the companies presented figures that are really stunning, earning the highest profit among shipping companies at Rs. 231,634 lakhs. That is gigantic wealth creation. Following them is a company that made Rs. 73,143 lakhs. This financial health screams confidence. It tells the world that Indian shipping isn’t just surviving; it is profitable, robust, and ready for more investment.
Sagarmala: The Infrastructure Revolution.
Talking about unlocking potential, the docks where our cranes stand can’t be left behind. Infrastructure is the magic key, and India is turning it with strength. The Sagarmala project is not only a government scheme; it is a visionary remodel of our whole logistics landscape. Instead of port-led development, we are now talking about getting port-led prosperity. At major ports now, there are 166 projects in progress, and 90 have already been finished, which is a mind-boggling increase of 230 million tonnes per annum in the port capacity.
New specialised terminals for certain requirements are being constructed, like, for example, the International Container Transhipment Terminal (ICTT) in Cochin and the LNG terminals in Dahej. But it is not only about the sea. The land connectivity is being boosted heavily. The coastal states are experiencing a rush of infrastructure developments in the form of 55 rail and 15 road projects to make it possible that once a ship comes in, the cargo can flow directly into the core area of India without any interruption. The aim is to reduce logistics costs and to make Indian exports very competitive in the global market.
Tech-Driven Transformation
The era of paper trails and manual custodian checks at ports is over. We are moving to the ‘smart port’ era.
Take the Kolkata Dock System (KDS) as an example – it has installed RFID-based Port Access Control Systems. This technology is not only delightful but has also improved security and reduced waiting times. In the entire port area, AIS base stations and new VHF radios are being installed to increase productivity.
Nonetheless, the National Logistics Portal (Marine) is the actual game-changer. This digital platform integrates every logistics stakeholder, meaning it is a single ecosystem with importers, exporters, shipping lines, and customs. It promotes transparency, reduces costs, and clears the way for delays that are known only through the “black box”. The combination of ‘Port Community System’ (PCS) and ‘Direct Port Delivery’ makes it easier than ever to carry out business transactions in Indian ports.
The Voyage Ahead: A Greener, Brighter Horizon
In the end, the excitement for the future is based on the aspect of sustainability. Our efforts are not just for the present; we are caring for the planet. The Indian government is setting an audacious and very ambitious target of going beyond 60% renewable energy for powering major ports by the year 2030. The integration of solar and wind power systems across the whole maritime infrastructure is being talked about. The acceptance of a future where our growth will not cost the planet has already begun. By 2035, India is expected to channel an astonishing $82 billion into port projects. This includes the construction of six megaports. In the end, we are standing on the deck of a ship that is gathering speed.
https://www.phdcci.in/blog/unlocking-indias-potential-in-the-maritime-economy/
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