The strategic position of India by the world’s largest sea route in the Indian Ocean emphasizes the significance of its shipping sector, which accounts for 95 percent of India’s global trade value.
For India, increasing investments to $81 billion, port and harbor construction projects are a top priority. Under an automatic pathway, foreign investment is permitted up to 100 percent in harbor construction projects
India’s shipping sector is a vital component in the country’s economic growth, both by value and volume. According to data from the Department of Ports, Shipping, and Waterways (MoPSW), maritime transportation channels account for around 95% of India’s global trade volume and 70% of overall trade worth. As of April 2020, India had a fleet of 1431 vessels.
Investment opportunities in the Indian shipping industry
With a focus on indigenous developing, maintaining, and operating ports, inland waterways, and shipbuilding, India has streamlined and expanded the scope of investments in the maritime sector.
Port and harbor projects are eligible for up to 100% foreign direct investment (FDI) under the automatic route in India. Indian ports have attracted a cumulative FDI total of INR 122 billion during the previous two decades (US$1.64 billion).
More than 574 new projects relating to the development of Sagarmala have been identified for implementation by 2035, and an investment of INR 6 trillion (US$81 billion) is being sought, both from the public and private sectors, in areas such as port modernization and new port development, port connectivity improvement, and port-linked industrialization.
As of September 30, 2019, a total of 121 projects at a cost of INR 302.28 billion (US$4 billion) have been completed, and 201 projects at a cost of INR 3.09 trillion (US$42 billion) are in progress.
The use of clean/renewable energy sources, as well as the improvement of associated infrastructure for trade and tourism, are also priorities in this sector.
In March 2021, India announced 400 new projects in the maritime sector with an investment potential of INR 2.25 trillion (US$30 billion) for developing its coast. India has also published a 10-year strategic vision for the maritime sector, “Vision India 2030,” which sets out its goals for the development of the industry.
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