India's Heavy Dependence on Foreign Ships Creates Strategic Vulnerability, Warns PM's Economic Advisor
India's overwhelming reliance on foreign-flagged vessels, which currently transport more than 90 percent of the nation's trade by volume, represents a significant strategic vulnerability that could undermine economic resilience during global crises. This critical assessment comes from Sanjeev Sanyal, Member of the Economic Advisory Council to the Prime Minister, who emphasized the urgent need to develop domestic maritime capabilities.
Strategic Weakness in Maritime Infrastructure
Speaking exclusively to ANI, Sanyal articulated that India's limited merchant fleet severely constrains the country's economic stability, particularly during periods of international uncertainty and geopolitical tensions. While acknowledging the essential role of naval strength, he stressed that commercial maritime capacity must expand in parallel to provide comprehensive security.
"I have argued many times before that ships and this maritime capability is one of our biggest strategic weaknesses," Sanyal stated unequivocally. He elaborated that a robust merchant fleet is indispensable to "provide support to the economy in good times and bad." The economic advisor further cautioned that military power alone cannot address this vulnerability, asserting that "Until we own our own ships, build our own ships, it's not enough to only have a navy."
Government's Comprehensive Maritime Push
To bridge this critical gap, the central government has accelerated initiatives to cultivate a comprehensive domestic shipping and shipbuilding ecosystem. Recent policy interventions have granted ships infrastructure status while implementing legislative reforms designed to simplify ownership structures and attract substantial private investment. These strategic measures are supported by an ambitious Rs 77,000 crore financial package specifically allocated to expand India's national fleet and strengthen overall maritime capabilities.
Beyond immediate strategic considerations, Sanyal highlighted the substantial economic advantages associated with scaling up shipbuilding activities. Describing the sector as an "ecosystem of jobs," he emphasized its labor-intensive nature and extensive industrial linkages across multiple sectors. "It requires basically a large amount of welding. There is all the engineering that goes into it, the steel that comes from it," Sanyal explained, noting the ripple effects that would benefit engineering, heavy manufacturing, and logistics industries nationwide.
Eastern India's Maritime Renaissance
Eastern India, with particular focus on West Bengal, stands poised to emerge as a primary beneficiary of this maritime development push. Sanyal cited the region's rich maritime heritage and existing infrastructure, including established facilities such as Garden Reach Shipbuilders. He referenced historical ports like Chandraketugarh and Tamralipti alongside modern hubs in Kolkata and Haldia as indicators of the state's inherent advantages for maritime development.
"I'm sure this big effort that the central government is doing in terms of building out the shipbuilding and shipping industry has many paybacks to places like Bengal," Sanyal projected optimistically, suggesting the initiative could catalyze regional economic transformation.
Integrating Maritime Strategy with Trade Expansion
The expansion of domestic maritime capacity directly aligns with India's evolving international trade strategy. As the country deepens economic engagement through new free trade agreements, including significant partnerships with major economies like the United States, Sanyal argued that shipping infrastructure will play a decisive role in determining success.
"As trade grows, the shipping industry will be a very important part of that trade," he emphasized, characterizing strong maritime linkages and a capable merchant navy as "absolutely critical" for sustaining long-term economic growth and global competitiveness. This comprehensive approach recognizes that economic security and strategic autonomy are inextricably linked to maritime self-reliance.
