Government To Monitor Freight Rates Amid Global Uncertainty, Boost Container Manufacturing: Shipping Secy
Shipping Secretary's statement comes against the backdrop of the Union Cabinet approving a Rs 69,725 crore maritime reform package.
The government is closely monitoring the ongoing geopolitical uncertainty and its impact on container freight rates for India's shipping industry. According to Shipping Secretary Vijay Kumar, officials are are also working on a mechanism to stabilise price uncertainties.
“Container availability is being monitored at the highest level of government. We are working to stabilise freight rates amid global uncertainty,” Kumar told NDTV Profit in an interaction.
The government is also working on building a scheme to incentivise container manufacturing in India, in a broader plan to reduce dependence on imports as well as push domestic manufacturing.
“We are working on a plan to promote domestic container manufacturing so that India is not dependent on imported containers,” he said. Shipping Secretary's statement comes against the backdrop of the Union Cabinet approving a Rs 69,725 crore maritime reform package.
It is the government’s most ambitious shipbuilding initiative yet and is part of the larger Amritkal Maritime Vision.
The package is designed to transform India’s shipbuilding and maritime ecosystem through a four-pillar strategy focused on boosting domestic capacity, expanding brownfield shipyards, and creating a Maritime Development Fund to provide long-term financing.
The government has set targets to make India one of the top 10 shipbuilding nations by 2030 and the top 5 by 2047, under the Vikshit Bharat plan.
Talking about the importance of this scheme and boosting domestic freights in general, Kumar highlighted India's reliance on foreign ships. "Currently, 95% of India’s EXIM cargo handled by foreign ships, causing large foreign exchange outgo," he said.
The Shipping Secretary confirmed that Rs 10 lakh crore-worth of Memorandum of Understanding (MoUs) have already been identified for the upcoming Maritime Week Summit.
"Maritime Week will be attended by high-level political delegations and is part of government push to create awareness about India’s maritime capabilities," he concluded.
