Diving into India’s blue economy a sea of opportunities (2024)

Summary: The blue economy offers India a chance to grow its economy and create sustainable and future-proof industries such as fishing, aquaculture, ports, and shipping. Although India has many advantages, such as its vast coastline, there are challenges, including fragmentation and lack of credit. Can India create a healthy blue economy while preserving its marine ecosystem?

India is one the fastest growing economies in the world today, but in recent times its growth has been slowing as the growth of all countries does when their economy begins to mature. Now India is looking for new avenues to continue fuelling its meteoric rise, but there is an ocean of growth it has yet to dip into, the Indian ocean. India has one of the most extensive coastlines in the world and is surrounded by the sea. There are many industries that India can grow through its oceans, such as fishing, poultry, ports, and shipping; these industries together comprise the blue economy, and it is this blue economy that will be vital to India’s future growth. Hence, the sea presents a golden opportunity for growing India’s economy and food security, sustainable devolvement, and creating future-proof jobs; we shall see how in this article.

Let’s start with an overview of what the blue economy is. The blue economy is the sustainable use of ocean resources for economic growth while ensuring the conservation of marine ecosystems. India has a vast coastline of 7500km, and its exclusive economic zones (EEZ) extend over 2.2 million square km. This means India has much potential for a healthy blue economy. The blue economy encompasses fishing, aquaculture, ports, and shipping, and the Indian government has initiated schemes to boost these sectors. These sectors have many advantages in India but are also plagued by serious issues, as we will see.

Four primary industries in India can fuel its blue economy; fishing, aquaculture, ports, and shipping. Let’s first have a look at fishing and aquaculture. Now, this is one industry that has seen rapid and sustained growth in India. According to India’s Ministry of Fisheries, Animal Husbandry, and Dairying, the fishing industry has reported a double-digit average annual growth of 10.87% since 2014-15 and a record fish production of 161.87 lakh tons in 2021-22. [1] India’s sizeable exclusive coastline and exclusive economic zone mean India has a vast area to fish in; it also has a healthy local demand for fish which keeps its domestic market competitive. But there are problems plaguing these industries.

One of the biggest problems plaguing this industry is that the Indian fishing industry is highly fragmented. It is mainly comprised of small fishermen who have a small catch and, as such, need help getting access to credit and also adopting modern technology, which stops them from being able to compete with more prominent players in the market. This problem is even more pronounced for aquaculture, which needs higher investment than fishing. The fishing industry in India has seen a smaller flow of investment than other industries, which means fishermen have low margins. Fragmentation and lack of regulation have also led to overfishing, which hurts the farmers in the long run. The government has had many initiatives, such as Pradhan Mantri Matsya Sampada Yojana, a scheme for the sustainable development of fisheries in India. In addition, the Blue revolution provides financial assistance to farmers, [2] these schemes are why the industry is growing. Still, for the industry to take the next step, it will need investment from the private sector.

Now let’s get on to ports and shipping. These industries are crucial for the growth of any modern economy as they are vital for imports and exports. And in recent years, India has been putting efforts into developing these industries, with the first step being privatisation. Privatisation certainly has its positives and negatives. The positive is that it shifts the burden of running an efficient and economically viable entity off the government and onto the company. It also allows for much greater room for innovation and investment. The Jawaharlal Nehru Port is a prime example of success when it became India’s first 100% Landlord major port, allowing it to benefit from the efficiency and investment brought by private players while maintaining control of strategic decisions.[3] The negative is that with private players, the environment can often take a back seat, and the conservation of marine life, which is an essential part of the blue economy, may require some government regulation to maintain.

However, the biggest problem plaguing the shipping and port industry is the need for more infrastructure to see privatisation as a net positive move. But only time will tell for sure. Shipping in India is the industry in the blue economy with the most scope to grow out of the four we have discussed today, as it is the industry that is least present in India currently. Shipping in India is mainly dominated by foreign players, with whom domestic players cannot compete. The limited access to credit, high operating costs, poor infrastructure, and bureaucratic hurdles have limited the growth of domestic players in the market. These issues will have to be solved for the shipping industry in India to flourish; once again, deregulating the sector and allowing foreign investment may be vital in helping the industry thrive.

Other industries also come under the blue economy, such as renewable energy, ocean-based tourism, and deep-sea mining, which can also be used to fuel growth. India has pushed firmly towards green energy, and the blue economy can right fit in. According to the Ministry of New and Renewable Energy, they have identified a potential 12455 MW of Tidal Energy and 40,000 MW of wave energy. [4] There is also significant scope for ocean-based tourism in India; with a vast coastline and a country full of beaches, India has plenty of potentials to create a thriving tourism industry. India also has significant ambitions for its offshore mining industry. It has hence announced the Deep Ocean Mission, a plan to mine the metals in the Indian oceans, including Copper, Nickel, Cobalt, and Manganese, estimated to be $110 billion. These industries will no doubt be essential to the blue economy.

Now that we have discussed all the benefits of the blue economy, it is essential to look at some downsides. The biggest downside will be the harm caused to marine life. A necessary part of the blue economy is to carry out these economic activities in a way that ensures that marine life is not harmed. Deep water mining, industrial fishing, ocean tourism, and a combination of these activities can quickly wash away the ocean’s life, making it even more critical that we ensure the protection of the ocean ecosystem from the beginning and not remember it when it is almost dead.

The blue economy presents a fantastic opportunity for India to grow its economy and create long-lasting and sustainable domestic industries. Of course, there will be many challenges ahead, but with the proper steps, the blue economy could give India some vital industries that propel its economy to the top.

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