Page 5 - Annual Review 2020

Basis data from the Ministry of Shipping, India’s to- tal import and export cargo volumes were 1019 mil- lion tonnes in 2018-19. Indian ships carry less than 10% of this cargo imported and exported by the Indian government and the private sector entities.
If the very same cargo was shifted to Indian flag ships, it would promote India buying more ships, more employment to Indian seafarers, more train- ing slots for young cadets, safe and secure usage of bank financing and more freight being retained in India. All of this would lead to additional contribu- tion to the Indian economy.
As per the UNCTAD Review of Maritime Trans- port 2020, of India’s total tonnage, the percentage share of Indian interests in non-Indian flag vessels is considerable. Of the total fleet owned by Indian companies, 17.56% by number and 34.97% by deadweight tonnage is owned by Indian interests through non-Indian flag. This a worrying trend and is demonstrative of the fact that even Indian com- panies prefer to flag their vessels outside India but not under the Indian flag. It is true that the Indian flag is one of the most expensive flags in the world and the cost of operating in India as an Indian flag is at least 25% higher. But surely, Indian corporate entities who have large interest in the exim or the maritime trade could consider shifting these invest-
Annual Review 2020
ments into the Indian registry. Clearly doing so will work in favour of the domestic industry and greatly improve our economic clout and also generate in- terest in flagging in India.
One cannot but admire and marvel at the spirit of the Japanese industry vis-à-vis their own country. As a newbie in policy advocacy, I was hunting for the policy document that said that all Japanese cargoes, public and private sectors, are meant for Japanese ships alone. I spoke to the Japanese Shipowners’ Association and learnt that there exist- ed no such policy anywhere on paper. But despite there being no such policy direction, Japanese car- go interests ensure their complete support to the Japanese shipping industry. No doubt that Japan has steadfastedly remained one of the largest fleet owning and operating countries in the world. Jap- anese shipowners too work along with Japanese importers and exporters, bankers, shipbuilders and insurance companies.
Given the Prime Minister’s current mantra of “Atmanirbhar Bharat”, is it time for Indian corporates to give deep and hard thought to their ability and their potential to revitalize the Indian shipping industry, the Indian economy and be the wind under the wings of a self-reliant India.
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