India: 4th Largest coast-line Can become World leader in Ship building and maritime industry

India has 4rth largest coast line in Asia just behind Indonesia, japan, china. Has not been used effectively for Economic good.
Simple statistics : Maritime Economic Index MEI , india ranks much higher than its present utilisation. MEI is designated to considered equivalent to HDI due its influences on many parameters especially monetary once. Although Human development Index takes education, health, maternity rate, maternity death etc into account so its different from MEI. But potential of MEI is very huge for coastal states like in India
Each state can do its bit. India imports 240 billion dollar of goods and Export around 170 billion dollars. Total trade in around 1/2 trillion dollars every year.
30,00,000 crore rupees of trade every year. Not only that it sits on important sea highway from middle east towards pacific.
So There can be many Sea faring companies which can take goods from any part of world and transport to any part of the world. So if we take this into account total value is much large. Even States UP, Bihar if they can make vessel run on ganga possible it will not only keep ganga clean also it will increase tourism to very large Extent.
There are no cruise Ship tourism currently in India although oppurtunity is very large for running ship from
Cruise ship west coast: west coast towards lakshdeep, maldives and back to goa, Gujarat, maharashtra, Karnataka,
Cruise East :Even on east cost on tamil nadu, AP orissa, West bengal towards lakshdeep and back. you get so many coral island in between. Blue beaches and white sand.
Economic opportunity in this Can only be developed if there is competing ship building companies in India in every state should compete with other space exist for all.
Calcualtion total Trade value:
1. Import+ Export: 30,00,000 crore.
2. International trade: 30,00,000 crore + it will more only but detailed below.
3. Tourism: 10% of 40 billion= 4 billion (lower side only)
As its a new area came up in chart it can take up a lot more than 10%. Also there are other related tourism out of total 100 billion tourism which india can attract let say 20% can be attracted here.
So it adds upto 20+4+ 20 Ship building due to cheap manpower ( 
Even Right now countries where labour rates are 5 times india like china have 12 billion Export in ship building. There is enough space for both china and India.
China can take itself from 12 to 50 billion dollar.
While india from present 2 can take to 20 billion in next 3 yrs.
So total min = 44 billion dollar Forex Earning per year.
Now distribute this wealth to 9 sea states in india.
Average around 5 billion dollar for each state. and not divide by population in these states of around 35 crore or .35 billion population per capita it come to
44/0.35= 125 dollar per year.
And effect of this on other tertiary sectors of around 125 dollar per person by way of secondary manpower. considering 1:1 ratio ( actually it would be 1:3 or 1:5).
So total conservative Estimate per capita increase by 250 dollar in next 3 yrs itself.
from present average 1500 dollar to inflation adjusted 1750 dollar or increase of 16% with that put inflation and other factor. if 7% inflation taken into factor.
it may affect 300 dollar per year or 18,000 rupees income to every person in these state due to Ship industry.
Addition to this is attaching another analysis. India is famously position for steel building having large iron and coal ores. India is lowest cost steel producer in world.

Manpower cost in India in 1/5 th of china.
Not only it can supplement into huge trade imbalance or trade deficit of around 100-200 billion dollar Every year. Thus giving Government quick arsenal to reduce every current account and trade deficit.
These are Easily achievable targets in next 3 yrs. 44 billion dollar per year reduction in 150 billion dollar trade deficit india is having.It would be very much needed As there is always fluctuation in IT sector going forward. The rates of Oil is also fluctuating So india would in difficult position if this is not done.
Note: There is no Meritime/Ship buidling University in India
India require increase in manpower of about 20% Every Year.
Why Goverment not focusing quickly in these sector?
– if it ends Unemployment in india engineering youth and bring forex in large to help stabilize rupee and bring forex trade deficit down from varying avg 130 billion to about 90 billion
Especially when India is going to election and most south,west , east sea faring states are very crucial Even opposition is targeting them along with ruling party. Giving them this vision for industry and sea linked to them. Sea gives all people there emotional bond with is not comparable with any other thought.

1 Comment

  1. Pingback: India: 4th Largest coast-line Can become World leader in Ship building and maritime industry | The economic side Of Things

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