India is setting sail to significantly expand its presence in global maritime trade. The government plans to establish a new shipping company with the ambitious goal of adding 1,000 vessels to the national fleet over the next decade. This initiative is driven by a desire to capture a larger share of revenue generated by India’s booming trade sector.
The new company, yet to be named, will be a joint venture between state-owned enterprises in the oil, gas, and fertilizer sectors, alongside the Shipping Corporation of India and potentially foreign partners. India is currently the world’s third-largest economy in terms of purchasing power parity (PPP), and its infrastructure investments aim to solidify its position as a global manufacturing powerhouse. Prime Minister Narendra Modi’s vision includes India becoming a developed nation by 2047, and this maritime expansion plan aligns with that goal.
The new shipping company will be headquartered at the GIFT City (Gujarat International Finance Tec-City), a financial hub designed to compete with Singapore. This strategic location will provide the company with access to tax incentives and streamlined regulations, facilitating its operations and growth. Additionally, the company will receive seed funding from a maritime development fund of approximately 300 billion rupees (around $3.6 billion) along with collaboration with major port authorities.
Source: Business Standard