India’s stationary course in the shipping value chain
- December 29, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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India’s stationary course in the shipping value chain
Subject : Geography
Section: Places in news
Yangtze river:
- The Yangtze, Yangzi or Changjiang is the longest river in Eurasia, the third-longest in the world, and the longest in the world to flow entirely within one country.
- It rises at Jari Hill in the Tanggula Mountains of the Tibetan Plateau and flows 6,300 km (3,915 mi) in a generally easterly direction to the East China Sea.
- It is the fifth-largest primary river by discharge volume in the world. Its drainage basin comprises one-fifth of the land area of China and is home to nearly one-third of the country’s population.
- The prosperous Yangtze Delta generates as much as 20% of China’s GDP. The Three Gorges Dam on the Yangtze is the largest hydroelectric power station in the world that is in use.
- Merchant ships navigate the river, importing raw materials and exporting finished products globally.
India and China’s maritime histories:
- Indian seafarers were prominent globally due to English proficiency and labour arbitrage.
- Indians excelled in ship management, contributing billions in foreign exchange yearly.
- However, India lagged in ship owning, chartering, financing, and shipbuilding.
- State-owned Indian shipyards suffered, impacting India’s shipbuilding capacity.
- China, propelled by government initiatives, became a dominant force in global shipbuilding by 2020.
- India’s Maritime Agenda 2020 aimed for a modest increase in shipbuilding, but India’s share dropped instead.
- The Maritime India Vision (MIV) 2030 lacked a plan for shipbuilding and ownership.
- Shipbuilding could strengthen India’s manufacturing capacity, strategic power, and global presence.
- Shipbuilding plays a vital role in military strength and international trade.
What is MIV 2030?
- To develop global standard ports in India, the Ministry of Ports, Shipping and Waterways under the MIV 2030 has identified initiatives such as
- Developing world-class Mega Ports,
- Transhipment hubs and
- Infrastructure modernization of ports.
- It estimates the investments to the tune of 1,00,000-1,25,000 crore for capacity augmentation and development of world-class infrastructure at Indian Ports.
Indian Shipping Industry:
- India has a coastline of more than 7,517 kilometres, interspersed with more than 200 ports, and most cargo ships that sail between East Asia, America, Europe, and Africa pass through Indian territorial waters. So, the shipping industry is a vital part of the Indian economy.
- In 1941, India’s first shipbuilding factory was established in Visakhapatnam. In 1952, the Indian government adopted it and renamed it ‘Hindustan Shipyard Limited.’
- The Shipping Corporation of India Ltd. (SCI) was established in 1961 and changed from a private limited company to a public limited company in 1992.
- It was given the status of ‘Navratna’ in August 2009.
- According to the Ministry of Shipping, maritime transport accounts for approximately 95 per cent of India’s trading volume and 70 per cent of its trading value.
- India is also one of the top five ship recycling countries globally, with a 30% share of the global ship recycling market.
- The largest major container handling port in India is the Jawaharlal Nehru Port Trust (JNPT) in Maharashtra, while the largest private port in India is Mundra in Gujarat.