Shipping has a unique and special role to play in Indian economy.
Since the ages, ocean has been the carrier and promoter of the
country’s business, linking to the civilizations across
the border. Its importance can be judged from the fact that 90%
of the country’s trade volume is moved by the sea.
The salient features of India’s shipping policy are the
promotion of national shipping to increase self reliance in the
carriage of the country’s overseas trade and protection
of stakeholders’ interest in EXIM trade.
One such initiative taken by the government to boost maritime
trade by developing ports, shipping and inland waterways is the
ambitious Sagarmala Project. US $22 billion Sagarmala project
is on roll with a focus to develop the Port and Shipping sector
under Public and Private Partnership. With 100% FDI permission,
the government is offering the incentives to the investors. While
the government’s stake in the project is slated to be 15%,
the rest of the funds will come from the private sector.
Sagarmala is not a solitary project; rather it is a conglomeration
of projects. It has a long-term visionary programme of many projects
aimed at bringing about rapid capacity expansion and modernisation
of the Indian maritime infrastructure, including ports and shipping,
along the country's east and west coasts. The ambitious project
is viewed to include shipbuilding, inland waterways, coastal shipping
and maritime education and training. The project envisages efficient
Inter-port connectivity to augment coastal shipping and reducing
transaction costs. The objectives of this project would be achieved
within a decade.
The chief focus of the project attends to augmentation of capacity,
efficiency, productivity and connectivity of the ports, increase
in shipping tonnage, increase in share of inland water and promotion
of coastal shipping, maritime training and navigational safety.
With the country’s share in global merchandise trade at
around 0.7 per cent, the project will assist in realizing a raise
to this share to at least 1 per cent by 2007. This would translate
into an addition of Rs 180,000 crore per annum of international
trade. Since 90 per cent of India's international trade by volume
and 70 per cent by value are carried through the ports, it calls
for massive upgradation of maritime infrastructure with a holistic
approach resulting in an integrated system of transport, including
sea, road, rail and inland water. Sagarmala as the name suggests
is expected to string together the coastal assets around our landmass
into a 'mala' (garland) studded with ports.
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