Blue Economy to be next GDP multiplier: CAG GC Murmu
- February 28, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
Blue Economy to be next GDP multiplier: CAG GC Murmu
Subject: Economy
Section : National income
Context: CAG is handling the SAI20 Summit on Blue Economy on occasion. The conference will focus on the study of the Blue Economy.
Concept:
Blue Economy to be next GDP multiplier:
- Around 80 per cent of the total volume of International trade in goods is carried by sea, according to the UN Conference on Trade and Development (UNCTAD). World Economic Forum, Davos Agenda 2022 recognized the fact that G20 Nations, primarily have 45 per cent of global coastline and jurisdictional responsibility over 21 per cent of the World’s Exclusive Economic Zone.
- SDG 14 helps to focus attention on the priority area of the Blue Economy
- The blue economy occupies a vital position in India’s economic growth and it could well be the next multiplier of GDP and well-being, provided sustainability and socio-economic welfare are kept at the centre stage
- India has a 7,517 km long coastline that is home to nine coastal states and 1,382 islands. The coastal economy sustains over 4 million fishermen and other coastal communities.
- There are nearly 199 ports, including 12 major ports that handle approximately 1,400 million tons of cargo each year,
- India’s Exclusive Economic Zone of over 2 million square kilometres has a bounty of living and non-living resources with significant recoverable resources such as crude oil and natural gas.
- The blue economy occupies a vital potential position in India’s economic growth. It could well be the next multiplier of GDP and well-being, provided sustainability and socio-economic welfare are kept at centre stage
Blue Economy:
- Blue Economy encompasses a wide range of economic activities pertaining to sustainable development of resources and assets in the oceans, related rivers, water bodies and coastal regions – in a manner that ensures equity, inclusion, innovation and modern technology
- Blue Economy sectors include: Fisheries, Aquaculture, Mariculture and Marine Products; Marine Biotechnology ; Offshore and Deep-Sea Mining ; Marine Tourism and Leisure ; Shipping, Port and Maritime Logistics ; Marine Construction ;Marine Renewable Energy Marine Manufacturing ; Marine Commerce and ICT and Marine Education and Research.
Mutiplier Effect
The multiplier effect refers to the effect on national income and product of an exogenous increase in demand. For example, suppose that investment demand increases by one. Firms then produce to meet this demand. That the national product has increased means that the national income has increased. Consequently, consumption demand increases, and firms then produce to meet this demand. Thus, the national income and product rises by more than the increase in investment. The multiplier effect is greater than one