India’s Plan to Boost Trade with New Ports: S&P Global Ratings
S&P Global Ratings suggests that India should develop a regional network of vital ports to enhance trade growth along its 7,517-kilometer coastline. The agency highlights the importance of strategic port development and appropriate trade, investment, and geopolitical policies.
India’s trade is predominantly seaborne, similar to countries like China, South Korea, and Vietnam. More than 90% of India’s import trade is conducted via sea. To fully benefit from its extensive coastline, India must prepare its ports for increasing exports and managing substantial bulk commodity imports.
India’s efforts include regular Navy visits to ports in Djibouti and Singapore, developing maritime trade routes with Sri Lanka and Oman, and upgrading trade agreements with the United Arab Emirates and Bangladesh. The evolving dynamics in public and private sector port development are benefiting India’s maritime ambition.
The Ministry of Ports, Shipping and Waterways’ Maritime India Vision 2030, released in 2021, aims to manage the improvement of 12 government-run and more than 200 privately run ports across India’s vast coastline. Significant investments include a USD 10 billion greenfield port at Vadhavan, near Mumbai, and a USD 600 million investment in a new container terminal at Tuna-Tekra, near Kandla in Gujarat.
India has sufficient container capacity for the near term, with about 33 million twenty-foot equivalent units (TEUs) compared to 22 million TEUs handled nationwide annually. The demand for bulk commodity imports, such as crude oil, LNG, LPG, coal, and fertilizers, is expected to remain strong beyond 2030, backed by economic growth prospects.
Doubts Revealed
S&P Global Ratings -: S&P Global Ratings is a company that gives opinions about how safe and strong the finances of countries and companies are. They help people understand if it’s a good idea to invest money in those places.
ports -: Ports are places near the sea where ships load and unload goods. They are very important for trade because they help move products from one country to another.
geopolitical policies -: Geopolitical policies are plans and actions that a country takes to deal with other countries. These policies help a country protect its interests and build good relationships with other nations.
Navy visits -: Navy visits are when a country’s naval ships go to ports in other countries. This helps build friendly relationships and shows that the countries are working together.
Djibouti -: Djibouti is a small country in Africa. It is important because it has a big port that many countries use for trade and military purposes.
Singapore -: Singapore is a small but very rich country in Asia. It has one of the busiest ports in the world, which makes it very important for global trade.
trade agreements -: Trade agreements are deals between countries to make it easier to buy and sell goods with each other. These agreements help countries grow their economies by trading more.
Sri Lanka -: Sri Lanka is an island country near India. It is important for trade because it is located on major shipping routes in the Indian Ocean.
UAE -: UAE stands for the United Arab Emirates. It is a country in the Middle East known for its rich oil resources and important ports like Dubai.
Maritime India Vision 2030 -: Maritime India Vision 2030 is a plan by the Indian government to improve its ports and shipping industry. The goal is to make India a major player in global trade by 2030.
