India To Provide Fiscal, Financial Support To Maritime Sector, Says Sitharaman

India will offer support to boost its maritime sector as the nation eyes to be the hub of the new diversified supply chains in the Indo-Pacific region, according to Finance Minister Nirmala Sitharaman.

"We are seized of the pressing need to grow the maritime sector as a whole, and our government is determined to provide the requisite support by way of fiscal policy and financial outlay," Sitharaman said while speaking at the Indo-Pacific Regional Dialogue in New Delhi on Wednesday. The country's comprehensive national power is going to remain inextricably linked to the ocean, she said.

"We are very clear that we cannot afford to be an inward-leaning power," said. India's transition from a "brown" to a "blue" economic model and extrapolating this across the Indo-Pacific demands that "we shoulder greater and heavier regional responsibilities, and this is precisely what we are doing".

India’s 'blue economy' accounts for roughly 4% of the GDP, with nine states and four union territories situated on the coast and 12 major and over 200 non-major ports situated along its coastline, the minister said. The maritime industry in India provides over 2 lakh direct and indirect jobs, which is only expected to grow, she said.

The government is looking to expand the productivity of India's maritime industry. The National Monetisation Pipeline of 31 projects includes nine major ports. The estimated capital expenditure was pegged at Rs 14,483 crore, or $1.74 billion, over FY 2022-25.

India is improving its strength in shipping arbitration and setting up a full-fledged Indian-owned and India-based Protection and Indemnity entity that will additionally provide protection to coastal and inland shipping, Sitharaman said.

Previously, at the Global India maritime summit, the finance minister had similarly urged banks to work with the maritime industry. The country has created a ‘Marine Cargo Pool’ with the insurance regulator and domestic insurance companies to support maritime trade, she said.

During the G20 leader's summit held in September, India unveiled plans to set up the India-Middle East-Europe Connectivity Corridor. The ship-to-rail transit network will supplem existing maritime and road transport between South Asia, West Asia, Europe, and the Middle East. 

"..the IMEC will be a win-win situation for all states involved as it enhances transportation efficiency, reduces logistic costs, increases economic unity, generates employment, and lowers greenhouse gas emissions, contributing to a cleaner, safer, better world," Sitharaman said. "However, it is not without its geopolitical challenges and the ongoing conflict in Israel and Gaza is a worrying manifestation of these."