India is now on its way to become a Superpower.
After signing the deals with Tesla and Apple to manufacture their products within India by setting up huge manufacturing units in Tumkur and Chennai, the government is now gearing up to strike the dominance of the Chinese at sea.
The Indian Government is planning to boost its export and cut down on imports under the 'Atmanirbhar Bharat' program.
The Current Situation at Sea:
Currently, the water transport industry heavily depends on Chinese containers to ship their goods. Since the pandemic, the cost for these containers skyrocket, and exporters from various countries felt the hit.
After the imports crash by over 19.6%, exporters of India struggle to book containers for their goods since the price for a single container is hiked from 50% to almost 100% i.e. double the earlier price.
According to a report from the Associated Chambers of Commerce and Industry of India, the price for the shipment of a container from India can be almost double the price of a similar shipment from China.
Currently, India is solely dependent upon its Shipping Corporation which is headquartered in Mumbai, Maharastra.
How will India establish its influence in Water Transport Industry?
The government in order to reduce the Chinese influence at sea, has decided to manufacture containers on a large scale.
Along with that, the government is also seeking to build a new shipping line that acts as a catalyst for the rising of a completely Independent India.
Earlier the Ministry of Port Shipping and Waterways had already formed a committee to study the manufacturing feasibility in Gujrat.
The count of exporters is on a steep rise which means in the near future the demand for shipping containers will simply continue to grow.
Recently, a piece of news popped up in the media stating that India's exports from China dropped by over 13% in the previous year of 2020 and on the contrary, the exports to China went up by 16%.
The Director-General of FIEO Ajay Sahai stated that the issue of lack of containers needs to be resolved faster. On one hand, we must focus on boosting the export and on the other hand minimize our exports.
In a report of 2019-20, the estimated traffic at all the major ports of India was around 704.82 Million Tonnes.
During the pandemic, India was recognized as a major exporter of rice, wheat, and other agricultural products. But during this massive shipment, shortage of containers emerged as a great concern.
As a result, there were huge delays in the transportation of goods.
According to the executive director of All India Rice Export Vinod Kaul, the demand for the supply of rice will only step up in the coming future. Hence lack of shipment containers will cause a huge blow to India's exports and India may face critical situations in the future.
He also stated that the Central Government must take note of this problem and address it as soon as possible.
The farm export of India has grown by 10% within 2020.
India, which already supplies over 32% of the world's Rice needs, witnessed a steep rise of 80.4%.
The exports of Basmati and Non-Basmati Rice during the April-December period of the current financial year.
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