Indian Shipping Industry

Year Evolution
A walk down the memory lane

With a coastal border of of 7,516.6 km, India has easy access to international waters. Given this
geographical trait, lets see how shipping has become an integral part of the countrys trade
and commerce since the Indus Valley Civilization.

THE GLORIOUS HISTORY

At the time of the reign of the royal

During an excavation in 1961, archaeologists dynasties, India had trade relations with
found remnants of a dock and ships proving neighboring countries like China, Africa,
the fact that India is an experienced and Burma, Thailand, Cambodia, Malaysia,
grand old shipping nation. Mesopotamia, Greece, and Rome.

In the course of Emperor Akbars reign,

there were around 40000 Indian ships
Trade during this period flourished, with plying in the Indian Ocean.
gems, textiles, spices, and luxury items
being prominent products of trade.

THE BIG BAN WITH EVEN BIGGER CONSEQUENCES

In
the high-quality and superior craftsmanship of Indian shipbuilders made
British counterparts insecure which led the then ruling British Government
, to ban shipbuilding in India.

This brought an 102 Shipping Number of operating A majority of Indian

hiatus in the Indian companies were ships reduced from trade was carried out
Shipping Industry shut down 34286 to 1676 with only the British
for almost 100 years and British colonies

RISING FROM THE ASHES

The shipping industrys growth after independence can be looked at in three phases:

1
Fighting Times License Raj
(1953 71) (1972 1990)

2
Phase characterized by low exports & high The main objective was to create
imports. Focus was to rebuild the nation & self-sufficiency, increase exports &
create capacity. reduce imports. It also created a
negative imbalance in the foreign
reserves.

3
Open Economy
(1991 till date)
The current phase which started from 1991, gave way to liberalization. Duty on certain imports was
lowered & legislations were made to encourage foreign investment.

The Government of India has implemented the following initiatives to ensure that India becomes a
logistical hub.

100% FDI Ten-year Tax Holiday National Maritime Development Program

Special Economic Zones Sagar Mala Project

COMPARITIVE OVERVIEW

PRE INDEPENDENCE POST INDEPENDENCE

British Government 1
Government of India
and then the Indian
GOVERNING AUTHORITIES (Ministry of Shipping
Government of
and Private Entities)
independent India

2 13 Major Ports and 200 Minor Ports

PORTS Kandla Paradip
JNPT Mumbai
Visakhapatnam Chennai
Calicut Kolkata Kolkata Mangalore
Mumbai Chennai Tuticorin Kamarajar
Krishnapatnam Kochi
Goa Tuticorin
Mormugao

3
SHIPPING COMPANIES

Shipping Company Essar Shipping

Scindia Steam Navigation
of India Ltd GE Shipping
Company Limited
Bharatiya Shipyard ABG Shipyard
Mercator Limited Gujarat Pipavav
Varun Shipping Global Offshore
Services Limited Shreyas Shipping

4
NUMBER OF SHIPS
Ships
Ships (2014)

5
GROSS TONNAGE

391 10309
Thousand Tons (1951) Thousand Tons (2014)

6
GOVERNMENT
INVESTMENT IN
SHIPPING SECTOR
26 Crores 10142 Crores
(1951-56) (2012-17)

7
PROMINENT TRADING PARTNERS (EXPORTS)

USA UAE SINGAPORE CHINA UK

Britain and British Colonies HONG KONG SAUDI ARABIA BRAZIL

NETHERLANDS GERMANY

8
PROMINENT TRADING PARTNERS (IMPORTS)

USA UAE INDONESIA CHINA IRAQ

Britain and British Colonies KUWAIT SAUDI ARABIA GERMANY

SWITZERLAND QATAR

9
VALUE OF TRADE
1950 - 51 2016-17

Exports Exports
INR INR
bn trln

Imports Imports
INR INR
bn trln

10
TOP IMPORTS

Consumer goods Mineral fuels + Electrical machinery +

Plastic articles + Animal/vegetable fats +
A lot more things from a lot of industries

11
TOP EXPORTS

Textile, Spices, Raw Cotton, Tea, Mineral fuels + steel + clothing and
Coffee, Leather products A lot more things from a lot of industries

12
CHALLENGES / SET BACKS

Demand- Supply Sino-India War

Rule by the World War I & II
(Negatvie effect on
British and other Imbalance Trade between
European Nations Non-Manufacturing China and India)
Infrastructure
Economy
High Operation Costs

The industry has grown leaps and bounds after independence, but we are still far behind Hon Kong,
China, and Singapore, both trade, operating capacity, systems and processes. Sri Lanka has also
become a popular transhipment hub in the region.

So even after 70 years of independence, the shipping and export - import industry of India is yet to
shake off its dependence and become a true global power in logistics and in trade.

This Independence Day, lets pledge to work together, innovate, simplify the processes and systems to
aid the governments initiatives and lead India towards excellence in shipping and trade.

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