- The India-UAE Virtual Trade Corridor will boost ease of business and logistics efficiency.
- Indian ports are crucial for India’s $5 trillion economy goal, with future global trade impact.
- Significant expansion can be observed in the Indian maritime sector, with a value projected to hit $300 billion by 2025.
The India-UAE Virtual Trade Corridor deal, signed in September 2024, marks a significant leap in fostering economic cooperation between India and the UAE. Officials see this agreement as a critical component of the India-Middle East-Europe Economic Corridor (IMEC), aimed at reducing logistics costs and administrative delays, reports BT.
IMEC and Its Pivotal Role for Indian Ports
Indian ports are set to be central to the IMEC project, which envisions a sea-link between India and Jebel Ali in the UAE, followed by a rail route through Saudi Arabia and Israel, ultimately reaching Europe.
This ambitious project is a game-changer for India’s global trade ambitions, positioning the country to become a key global trade hub.
Expanding Role of Indian Seafarers in Global Shipping
Industry experts project that Indian seafarers, currently accounting for 10% of global shipping crews, will rise to 20% within a decade.
With over 90% of global trade relying on shipping, Indian sailors and ports are becoming increasingly important to the world’s shipping industry.
India’s Ambitious Targets for Cargo Handling by 2030
According to Karan Adani, Managing Director of APSEZ, India aims to handle 100 crore tonnes of cargo by 2030.
With strategic infrastructure and supply chain development, Indian ports could become the central hub for neighboring countries’ trade activities.
Projected Growth of the Indian Maritime Sector
The Indian maritime sector is valued at $130 billion today. It is expected to grow to $300 billion by 2025, according to McKinsey & Company.
Of this, the shipping industry is estimated to make up $95 billion, with the ports sector contributing $60 billion.
India’s Potential as a Regional Trade Hub
Sajjan Jindal of JSW Group likened India’s maritime potential to that of Singapore. He suggested that India can develop ports to handle not only its own cargo but also that of neighboring countries.
Strategic location of India makes it ideally placed to serve as a major regional trade hub.
India’s Status in the International Maritime Organization (IMO)
International Maritime Organization has included India on its ‘whitelist’. It underscores the country’s commitment to high standards in licensing, training, and port control.
This can further boost the credibility and demand for Indian maritime services globally.
Growth in Cargo Traffic at Indian Ports
In FY24, Indian ports handled 818 million tons of cargo, reflecting a 4.45% increase from the previous fiscal year.
This surge highlights the vital role of ports in India’s merchandise exports and imports and underscores their growing importance in global trade.
Challenges and Opportunities in the Maritime Sector
The maritime industry faces challenges such as green targets, geopolitical tensions, and supply chain issues.
However, India’s extensive coastline and strategic positioning offer immense potential for growth, especially as the country works toward its Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.
India’s Maritime Vision for the Future
India is actively working on its Maritime India Vision 2030, with efforts underway to achieve ambitious targets.
The Maritime Amrit Kaal Vision 2047 further sets the stage for India’s continued growth and dominance in the global maritime trade sector.
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Source: BT
