Publication: India Seatrade News
The maritime sector is a key growth enabler for India’s economy. The sector is driving the country’s economic engine by managing about 70% of India’s trade by value and 95% by volume. However, beneath the impressive scale lies a disquieting reality. Indian-flagged or Indian-owned vessels transport only about 8% of this cargo, with foreign ships carrying the rest. This reality serves as a clear reminder of the nation’s dependence on foreign carriers in maritime trade. This over-reliance on freight carriers results in freight payment outgo of $75 billion annually. Moreover, it takes away India’s strategic leverage in global trade corridors.
India’s strategic geography, global opportunity
Let’s look at the Indian Ocean as an example. It has been at the heart of global trade, routing a substantial portion of the global maritime trade. Some of the high-traffic and most strategic trade routes pass through this, as it connects Asia, Africa, Europe, and the Middle East. This strategic significance makes the Indian Ocean a crucial pathway for global supply chains across developed and developing markets. Hence, the end of the predominance of foreign-flagged vessels along these routes is something that the Indian shipping and logistics sector is keen to see in the near future.