- INSA suggests strategy to reduce India’s freight bill as also double the share of national fleet in India’s EXIM trade
Indian National Ship owners’ Association (INSA), the national body of Indian flagged shipping companies, supports and appreciates the second mandate bestowed on NDA by the people of India.
In a statement issued here, INSA has a request for Modi 2.0 – to finalise a comprehensive Shipping Development Policy that would enable India to triple its national fleet and recapture its position as one of the leading sea powers in the world.
Having a large fleet would automatically increase commercial security for the supply chain of strategic Indian cargo and will lead to retention of freight which is valuable foreign exchange currently being taken out by foreign shipping company. Studies estimate that Indiapays in excess of Rs. 3 lakh crore as freight to foreign shipping companies.
At a meeting held to introduce INSA to Shri Mansukhbhai Mandaviya, Hon. Minister of State, Shipping, (Independent charge), Capt. Anoop Sharma, chairman Shipping Corporation of India said “We are glad that a young and dynamic leader like Mansukh L. Mandaviya has been given our portfolio. We are certain that under the visionary leadership of Shri Narendra Modi, he would steer the domestic ship-owning industry towards growth through effective and timely measures.”
According to Mr.Devli, CEO, INSA, who was present on that occasion, the Minister showed great interest in the state of the national fleet noting that Indian currently ranks 16th in the world fleet and has a long way to go. “We expect to see policies which would enable the Indian fleet to triple in size and increase its share in the EXIM trade of India, thus reducing India’s humungous freight bill currently being paid to foreign shipping companies,” he added.
The Indian tonnage is ranked 16th in the world and with concerted efforts of the Government and all concerned stakeholders, it would not be difficult to try and achieve the 11th rank by 2030. Currently, the size of Indian national tonnage is 17974as per UNCTAD and India could aim at tripling the same.
INSA shall soon be submitting its suggestion on policies that would aid a modal shift of at least 20% domestic cargo from road to coastal shipping and inland waterways by 2022. This is beneficial to India’s effort to grow usage of water as a mode of transport, decongests its roads and achieve lower carbon emissions.
A two-pronged national maritime strategy addressing both EXIM and coastal shipping would enliven the entire maritime sector.
