PYQ Relevance[UPSC 2021] Investment in infrastructure is essential for more rapid and inclusive economic growth. Discuss in the light of India’s experience. Linkage: This question assesses the role of infrastructure investment in driving inclusive and sustainable economic growth, a core theme under GS Paper III. It directly links to the article’s discussion on India’s renewed focus on port-led development and maritime self-reliance as catalysts for national growth and strategic autonomy. |
Mentor’s Comment
The article highlights India’s renewed focus on its maritime and shipping sector, a domain long overshadowed by globalisation-led neglect and privatisation. As the government signals intent to revive indigenous shipping strength, the discussion becomes crucial for UPSC aspirants studying issues of economic infrastructure, logistics, Atmanirbhar Bharat, and India’s maritime strategy under GS Paper 3 (Infrastructure: Transport and Shipping).
Introduction & Why in the News
At the India Maritime Week, Prime Minister Narendra Modi underlined that shipping is not merely a business but a strategic national asset. This marks a policy shift, after decades of liberalisation and privatisation which weakened India’s domestic fleet and shipbuilding capacity. With the pandemic exposing India’s dependence on foreign-owned ships, the government has now initiated fresh investments, port reforms, and fleet strengthening measures to make Indian shipping globally competitive once again.
Reclaiming India’s Maritime Strength
- Decline under Liberalisation: Over two decades of globalisation and privatisation led to weakened domestic shipping, with the Shipping Corporation of India (SCI) losing state backing and market share.
- Loss of Strategic Autonomy: Reliance on foreign ships reduced India’s ability to secure trade routes and logistics during crises.
- Pandemic Wake-up Call: COVID-19 disruptions exposed this overdependence, renewing calls for self-reliance and fleet revival.
How Government Policies Shaped the Sector’s Decline
- Privatisation and Reduced Support: The ideological shift toward liberalisation led to reduced state ownership and limited investment in domestic capacity.
- Withdrawal of Favourable Policies: Earlier advantages like first rights to transport India’s oil were withdrawn, eroding SCI’s competitiveness.
- Diluted Strategic Intent: Shipping became treated as a commercial, not strategic, enterprise unlike in major maritime nations such as China or South Korea.
The Post-Pandemic Realisation: Shipping as Strategic Infrastructure
- Strategic Leverage: Post-COVID, the government realised that control over shipping fleets = control over supply chains, a critical factor during disruptions or wars.
- National Interests and Protectionism: As Western nations turned protectionist, India reoriented towards building indigenous capacity to ensure secure maritime logistics.
- New Investments Announced: Major port-related projects and transshipment hubs like Chennai and Kolkata were revived to strengthen domestic capabilities.
Reforms and Initiatives: Building Self-Reliant Maritime Power
- Port-Led Development: Under the landlord model, India’s ports now share revenue with private players, encouraging efficiency and foreign participation.
- Transshipment Hubs: Development of Chennai and Kolkata projects reflects India’s ambition to capture cargo movement currently routed via Colombo or Singapore.
- Shipbuilding Incentives: Moves toward strengthening shipbuilding and ship repair capacity ensure domestic employment and reduce outflow of forex.
- Indian Seafarer Training: Focus on education and skill development enables Indian crew to compete internationally and serve domestic fleet expansion needs.
Private Sector Role and Strategic Leverage
- Private Shipping Companies: Encouraged to register ships in India and operate via local subsidiaries to enhance fleet size.
- Financial Autonomy: SCI’s balance sheet strengthening and port reforms attract new investors.
- Insurance and Ancillary Services: Government aims to extend support to marine insurance, finance, and logistics for creating a complete maritime ecosystem.
Conclusion
India’s renewed emphasis on shipping marks a strategic reassertion of maritime sovereignty. As the government invests in ports, fleet expansion, and seafarer training, the focus must remain on integrating private capacity with national goals. True maritime power will come not from tonnage alone, but from strategic control over logistics, shipbuilding, and manpower. With sustained policy backing, India can transform from a cargo-dependent nation to a maritime leader.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
