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298 Economic Survey 2021-22

8.55 As on 31stDecember 2021, India had a fleet strength of 1463 vessels with Gross
tonnage (GT) of 13,011 thousand compared to 1429 vessels and 12,746 thousand of GT at
the end of 2019. However, Indian fleet is just 1.2 percent of world’s fleet in terms of capacity
and carries only 7.8 percent (for 2018-19) of India’s EXIM trade. With the cost of using
services of foreign shipping company is less than that of a local shipping company, most
freight moves in foreign ships leading to aa huge foreign exchange outflows. In order to
address the cost disadvantage suffered by Indian flag ships, in July 2021 the Union cabinet
has approved a scheme providing subsidy support of Rs.1,624 crore to Indian shipping
companies in global tenders floated by Ministries and CPSEs over five years to promote
flagging of merchant ships in India.

8.56 Many initiatives have been taken by the government to improve port governance, augment
capacity utilization, enhance port efficiency and connectivity. The measures include the following
among others:
¾ Sagarmala which is a National Programme aimed at accelerating economic
development in the country by harnessing the potential of India’s 7,500 km long
coastline and 14,500 km of potentially navigable waterways. The Sagarmala projects
include port modernization & new port development, connectivity enhancement, port-
led industrialization, coastal community development, coastal shipping and Inland
water transport. Currently, there are 802 projects worth investment of Rs. 5.54 lakh
crore for implementation under the Sagarmala Programme by 2035. Out of which, 181
projects worth Rs. 94,712 crore have been completed and 223 projects worth Rs. 2.11
lakh crore are under implementation. Further, 398 projects worth Rs. 2.48 Lakh crore
are under various stages of development.

¾ The Major Port Authorities Act 2021 was notified on 18.2.2021. This act provides for inter
alia regulation, operation and planning of major ports in India and vests the administration,
control and management of such ports upon the Boards of Major Port Authorities.

¾ A new Captive Policy for Port Dependent Industries has been prepared to address the challenges
of renewal of concession period, scope of expansion, and dynamic business environment.

8.57 With the objective of propelling India to the forefront of the Global Maritime
Sector, the Maritime India Vision 2030 (MIV 2030), a blueprint to ensure coordinated and
accelerated growth of India’s maritime sector in the next decade was released on March
2021. The objective is to develop world-class mega ports, transshipment hubs and ensure
infrastructure modernization. MIV 2030 estimates that development of Indian ports will
drive cost savings of Rs. 6,000-7,000 crore per annum for EXIM clients. Further, the
augmented operations are estimated to create an additional ~700,000-1,000,000 jobs in
the sector. MIV 2030 estimates the investment requirement for capacity augmentation
and development of world class infrastructure at Indian Ports to be to the tune of
Rs. 1, 00,000 – 1, 25,000 crore.