Cruising ahead, Pg6

Key Highlights:

• India Maritime Week, headlined by Prime Minister Modi, highlighted the strategic importance of shipping.
• The Indian shipping sector weakened due to liberalisation, privatisation, and globalisation policies over two decades.
• COVID-19 exposed India's dependence on foreign-owned ships and limited trade intervention capabilities.
• Government initiatives now focus on strengthening the Shipping Corporation of India (SCI) and promoting Indian ship registration.
• Investments during Maritime Week targeted port-related projects, connectivity, Sagarmala projects, and seafarer training.
• Focus on attracting foreign shipping companies to register ships in India through local subsidiaries.
• Progress in Indian merchant shipbuilding remains limited, hindering industrial and technical expertise growth.

Detailed Insights:

• The government previously prioritized seafarer training for foreign ships over domestic shipping industry support.
• SCI, once a global leader, declined due to withdrawn favorable policies, nearly facing privatisation.
• Post-pandemic, the government recognized shipping's strategic role during disruptions, war, and protectionist trade environments.
• The landlord model for ports involves revenue sharing with private and foreign companies for terminal operations.
• Chennai and Kolkata ports are undertaking the transshipment hub project in the Andamans to boost port infrastructure.
• Government aims to gain leverage over foreign shipping companies registered in India to serve Indian needs.
• Advancements in Indian merchant shipbuilding are crucial for demonstrating industrial and technical expertise.

Key Concepts Involved:

• Liberalisation: Reducing government regulations and restrictions in the economy.
• Privatisation: Transfer of ownership from public to private entities.
• Globalisation: Increasing interconnectedness and interdependence of countries through trade, investment, and technology.
• Sagarmala Project: Initiative to enhance port-led development in India.