Blue Economy: Sustainable Possibilities for a $ 5 Trillion Economy

As envisioned by Prime Minister Narendra Modi to make India a USD 5 trillion economy by 2024-25, India is poised to rise steadily on the path of becoming a global power. This moment presents us to create a sustainable future to envision a New India which we aspire to create for our future generations and the world order which we wish to shape. The year 2022 is a momentous occasion which is commemorating 75 years of independence and the glorious history of our people, culture, and achievements.

In the 2019 document of the Government of India’s Vision of New India by 2030, Blue Economy was identified as one of the ten core dimensions of growth. The Blue Economy was mentioned as the sixth dimension of this vision stressing the need for a coherent policy integrating different sectors so as to improve the lives of the coastal communities and accelerate development and employment. It can be stated that Blue Economy clubbed with Infrastructure development can become a key driver and a game changer for the Indian economy.

What is Blue Economy?

World Bank defines the blue economy as the "sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem." A United Nations representative recently defined the Blue Economy as an economy that "comprises a range of economic sectors and related policies that together determine whether the use of ocean resources is sustainable.

However, Prime minister Modi’s view –“To me the Blue Chakra or Wheel in India’s National Flag represents the potential of Blue Revolution or the Ocean Economy. That is how Central the Ocean Economy is to us” – depicts India’s strength and the robustness vis-à-vis Blue Economy.

The Draft policy on Blue Economy defines India’s Blue Economy as a subset of the national economy comprising of the entire system of ocean resources and man-made economic infrastructure in marine, maritime and the onshore coastal zones within India’s legal jurisdiction, which aid in the production of goods and services and have clear linkages with economic growth, environmental sustainability and national security.

Globally, it is estimated that ocean economy contributes to about US$1.5 trillion per annum and is responsible for contributing approximately 2 to 3% to the world’s gross domestic product.

India’s Blue Power

India’s maritime strength includes its 7517 km long coastline which is home to nine coastal states and 1382 islands. With about 12 major ports and 187 non-major ports handling about 633.87 million tons of cargo during the year 2019, it is estimated that 95% of India’s trade by volume transits by sea.

The Exclusive Economic Zone (EEZ) of India has an area of about 2.02 million sq. km. within a limit of 200 Nautical Miles (NM) from the coastline. India’s maritime and ocean front holds key to recoverable resources of crude oil and recoverable natural gas.

Apart from this, the Indian Ocean Region can also significantly enhance value addition in coastal manufacturing and services, trade, shipping, deep-sea minerals, aquaculture and fisheries and marine-related technologies. This also is substantiated by the fact that the coastal economy also sustains about 40 lakh population of fishermen & women along with other significant populations of coastal districts. Broadly speaking, The Indian maritime region encompasses the following broad areas of livelihood and means of support.

1. Fisheries and Aquaculture

2. Renewable Ocean Energy (Tidal, Wind, Solar etc.)

3. Seaports and Shipping

4. Offshore Hydrocarbons and Seabed Minerals

5. Marine Biotechnology, Research and Development

6. Tourism

The Blue Economy is fast emerging as central point to the sustainable development programs in India. With an availability of range of development opportunities in the fields such as sustainable fisheries/ aquaculture, tidal energy resources, Food from Oceans, sustainable tourism etc., the rich seas and oceans are envisioned as a major resource to achieve the growth and poverty alleviation goals.

The Blue Economy policy identifies to strengthen and have sustained Human development activities for the coastal populace including about 6 lakh BPL families. Given India’s extensive coastline of 7517 km length, of which about 5423 km is in peninsular India and 2094 km is in the Andaman & Nicobar and Lakshadweep islands, the Blue Economy clubbed together with the Sagarmala project has already induced the pace and tempo of achieving the 5 trillion dollar economy target. Further, it is envisaged that the Exclusive Economic Zone (EEZ) which has an extent of 2.02 million km, can also support a huge human population of 170 million which are dependent on the rich coastal and marine resources. In addition, it is viewed that the about 350 million jobs globally are linked to the oceans through fishing, aquaculture, coastal and marine tourism and research activities.

In such a scenario, when the world is eager to reposition its partnership with our country, the Blue Economy. We have already reached middle income status and have a huge task of meeting to the growing aspirations of its citizens to become a higher middle income to high income nation by the end of this decade in 2030.

Further it is reiterated that India’s growing economic and political stature and the relevance of its extensive experience in technical and scientific advancement combined with investments positions it to play a greater leadership role in the global arena.

India’s Blue Economy - A Draft Policy Framework document prepared by the Economic Advisory Council to The Prime Minister, Government of India, New Delhi (SEPTEMBER 2020) aims to cover eight different areas in its scope. These essential components of the Blue Economy Policy are:

1) A National Accounting Framework for the Blue Economy;

2) An Environmentally Sustainable National Coastal Marine Spatial Planning Framework;

3) A vision to Develop Marine Fisheries, Aquaculture, and Fish Processing;

4) A vision to enhance domestic manufacturing, emerging industries, trade, tourism, technology, services and skill development;

5) An Integrated Plan for Developing Logistics, Infrastructure, and Shipping;

6) A Framework for Coastal and Deep-sea mining, New and Renewable Off-shore Energy and Research and Development;

7) An Integrated Framework for Ocean Security, Strategic Dimensions, and International Engagements; and

8) Ocean Governance.

Further, it is envisaged that the development of road, rail and inland waterways infrastructure as the “First Step To Last Mile Connectivity Approach” for ports and Blue Economy based entrepreneurs is extremely important. Accordingly, the following recommendations were highlighted in the draft policy on Blue Economy:

1. Adopt the concept of hub and spoke for gateway and feed exports.

2. Build warehousing, freight aggregation and cargo consolidation infrastructure for efficient

3. Catchment.

4. Implement a cost-effective national multimodal network integrated on a digital grid to reduce logistics and transportation costs.

5. Coordinate and integrate the monitoring process of infrastructure projects under implementation, including Sagarmala, Industrial Corridors, Coastal Economic Zones, Dedicated Freight Corridors, Bharatmala etc. This will ensure complementarily in various projects so as to develop overall national maritime infrastructure capacity.

6. Develop multi-modal logistics parks and create value-added services (packaging, tagging, crating) in a single location.

The draft paper states that Sagarmala will be a key to comprehensive port led coastal development. Further, it states that to promote port-led industrialization, the Govt. has identified 12 major ports and 14 Coastal Employment Zones (CEZs) as part of the National Perspective Plan under the Sagarmala program. Each CEZ comprises Coastal Economic Units (CEUs), with single or multiple industrial clusters where there will be manufacturing units. Such approach in having Marine clusters will be pivotal for port led development as already conceptualized in the Sagarmala program would be given impetus through enhanced focus and funding. Accordingly, the policy states that the ship building industry in India would be promoted and modernized with a 30-year plan with a thrust on Make in India and Atmanirbhar Bharat. This will give impetus to not just to ancillary units under Make in India program but also generate local employment while generating the revenue.

Thus, an Inter-Twinning of Blue Economy & Bharatmala program can aid the achievement of the target of 5 Trillion Dollar Economy by 2024 as envisioned by PM Narendra Modi. The integration of Blue Economy with Bharat Mala can boost the economy and sustainable development in terms of Fisheries, Aquaculture, Tourism, Food security, Energy needs, Non-conventional energy resources such as Solar, Wind, Tidal energy etc. Indeed, India’s success will be central to the world’s collective ambition of achieving the targets of ending extreme poverty and promoting shared prosperity and the 2030 Sustainable Development Goals (SDGs).

Coastal State Wise Population of India

Source:http://iomenvis.nic.in/index3.aspx?sslid=14989&subsublinkid=507&langid=1&mid=1accessed on 30-12-2022

TOTAL NUMBER OF COASTAL DISTRICTS -  66

TOTAL NUMBER OF ISLANDS - 4

TOTAL NUMBER OF UNION TERRITORIES - 7

Source: http://iomenvis.nic.in/index3.aspx?sslid=14748&subsublinkid=606&langid=1&mid=1 accessed on 30-12-2022 (Site Last Updated On: 01/02/2022)