Advantage India
Robust
Demand
*Ports sector in India is being driven by high growth in external trade.
*On June 19, 2024, the Indian government approved plans to invest over US$ 9 billion in the construction of Vadhavan Port, located north of Mumbai, which aims to become one of the world's top 10 ports, enhancing trade capacity between India, the Middle East, and Europe.
Attractive
Opportunities
*India plans to establish a new shipping company to expand its fleet by at least 1,000 ships in the next decade, aiming to reduce freight costs and capture more revenue from increasing trade, with joint ownership by state-run oil, gas, and fertilizer companies, along with the state-run Shipping Corporation of India and foreign companies, targeting a reduction of at least one-third in foreign freight outgoings by 2047.
Policy
Support
*On July 26, 2024, the Government of India announced an update to the Shipbuilding Financial Assistance Policy (SBFAP), which has provided financial aid totaling Rs. 337 crores (US$ 40.40 million) to enhance India’s competitiveness against foreign shipyards and revitalize the shipbuilding industry. Since the policy's inception, 313 vessel orders valued at approximately Rs. 10,500 crores (US$ 1.26 billion) have been secured.
*In the Interim Union Budget 2024-25, the total allocation for the Ministry of Shipping was US$ 281.23 million (Rs. 2,345.45 crore).
Competitive
Advantage
*India has a coastline which is more than 7,516.6 km long, interspersed with more than 200 ports.
*Most cargo ships that sail between East Asia and America, Europe and Africa pass through Indian territorial waters.
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