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    Unlocking India's blue economy: A pathway to sustainable growth and prosperity

    Unlocking India's blue economy: A pathway to sustainable growth and prosperity

    Future of blue economy in India hinges on innovative practices, effective policies and development, ensuring prosperous and sustainable ocean economy.

    The blue economy involves the sustainable utilisation of ocean resources for economic expansion, enhancing living conditions and generating employment, all while preserving the well-being of marine ecosystems. It includes all economic activities related to oceans, seas, and coasts, spanning sectors such as fisheries, shipping, marine renewable energy, and tourism. The concept has gained prominence globally,1 with countries such as India focusing on the blue economy as a cornerstone for future growth.2

    India, with a coastline exceeding 7,500 kilometres,3 has a vibrant blue economy that contributes around 4 per cent to its GDP and handles 95 per cent of its trade by volume through maritime routes.4 This coastline spans nine coastal states and four Union Territories (UTs) and comprises twelve major ports and two hundred smaller ports.4 Given this vast potential, India has implemented several initiatives to strengthen its blue economy.

    Importance of sustainability in India

    The blue economy is crucial for India’s sustainability. By promoting the responsible use of marine resources, it can fuel economic growth while ensuring environmental protection. India’s Maritime Amrit Kaal Vision 2047 is a flagship initiative aiming to modernise ports, improve shipping infrastructure and promote renewable marine energy, with an investment target of INR35,000 crore by 2047.5 Other notable programmes such as Sagarmala, Integrated Coastal Zone Management, and the Deep Ocean Mission further support the sustainable development of the ocean economy.4

    Key sectors driving India’s blue economy

    India ranks as the world's third-largest fish producer, poised to achieve a CAGR of 24.6 per cent in fisheries between 2016 and 2030, outperforming other major producers such as China, Indonesia and Vietnam.6 The sector employs millions directly and indirectly,4 with aquaculture playing a pivotal role in meeting domestic seafood demand. Initiatives such as the Pradhan Mantri Matsya Sampada Yojana (PMMSY) aim to bolster the sector's resilience and sustainability, highlighting the need for further technological advancement.

    Maritime transport is pivotal for India's trade and efforts are underway to make the sector more sustainable. The Maritime Amrit Kaal Vision 2047 includes strategies to decarbonise shipping, introduce green fuels such as hydrogen and ammonia and create carbon-neutral ports. These initiatives aim to align India's maritime industry with global climate goals, including reducing greenhouse gas emissions from international shipping by 2050.7

    Tourism in coastal and island regions is a key component of the blue economy, providing a source of income for local communities. However, challenges such as over-tourism and the need for sustainable infrastructure remain. Eco-friendly tourism practices and community engagement are essential to balancing economic benefits with environmental preservation.

    Technology plays a transformative role in overcoming challenges in India's blue economy. Innovations such as satellite monitoring, artificial intelligence and blockchain improve marine resource management, predict weather patterns, and enhance transparency in supply chains. Additionally, renewable marine energy technologies such as tidal turbines and wave energy converters demonstrate the potential for harnessing ocean currents and waves to support sustainable energy production.

    blue economy

    Navigating India's blue economy: Challenges and opportunities

    Despite its potential, India's blue economy faces several challenges that must be addressed for sustainable growth:

      1. Overfishing

        Many fisheries are overexploited, risking long-term sustainability and marine biodiversity.

      2. Climate change

        Rising sea levels, ocean acidification and extreme weather patterns pose significant threats to coastal ecosystems and communities.

      3. Marine pollution

        Pollution from plastics, chemicals and oil spills continues to degrade ocean health, endangering marine life and coastal livelihoods.

      4. Infrastructure deficits

        India's port infrastructure struggles with congestion and inefficiencies, hindering the growth of maritime trade and coastal development.

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      These challenges can be effectively addressed through innovative solutions within the blue economy framework:

          DCIM\100MEDIA\DJI_0187.JPG
          1. Sustainable fisheries management

            Improved regulatory frameworks and advanced technologies promote responsible fishing practices, helping to replenish fish stocks and ensure long-term sustainability.

          2. Climate resilience

            Investments in renewable marine energy and coastal infrastructure mitigate climate change impacts while supporting economic growth.

          3. Enhanced pollution control

            Strengthened environmental regulations combined with innovations in waste management and pollution control preserve marine ecosystems.

          4. Modernised ports

            Upgrading port infrastructure with green technologies and streamlining logistics improves efficiency and reduces environmental impact.

          Charting the course forward

          As India progresses in developing its blue economy, it has the opportunity to unlock significant economic and environmental benefits. Key positive outcomes include:

          Job creation

          The blue economy can generate millions of jobs, particularly in coastal and rural areas, providing livelihoods in sectors such as fisheries, tourism, and renewable energy.
           

          Economic growth

          Marine renewable energy, offshore wind farms and advancements in biotechnology and marine biology can create new revenue streams and strengthen India's position in the global market.

          Environmental conservation

          Prioritising sustainable practices across sectors ensures that economic growth does not come at the cost of environmental degradation.
           

          By 2035, India's coastal shipping modal share is expected to grow from 6 per cent to 33 per cent, reflecting the robust potential for economic expansion.8 The continued integration of cutting-edge technologies in marine management and renewable energy will solidify India’s position as a leader in sustainable ocean governance.

          India’s blue economy represents a critical opportunity to address pressing economic and environmental challenges. Through sustainable management of marine resources, India can foster economic growth, create jobs, and protect its vast marine ecosystems. The future of the blue economy in India hinges on innovative practices, effective policies, and responsible development, ensuring a prosperous and sustainable ocean economy.

          [1] Blue Economy Supporting World in Achieving SDG: Sabah International Blue Economy Conference (SIBEC) 2024, UNDP, 19 October 2024
          [2] Budget 2024: What is 'Blue Economy 2.0' announced to boost aquaculture, Business Standard, 1 February 2024
          [3] Blue Economy to Foster an Ocean of Opportunities for India, CII, 14 February 2023
          [4] India and the Blue Economy: Challenges and Way Forward, United Service Institute of India, 12 January 2024
          [5] Maritime Amrit Kaal Vision 2047: India's bold ₹80 lakh crore push to boost coastal and inland water transport, Business Today, 12 September 2024
          [6] India’s Blue Economy, Invest India, accessed on 25 October 2024
          [7] Revised GHG reduction strategy for global shipping adopted, International Maritime Organization, 7 July 2023
          [8] Indian blue economy is thriving but country needs to be careful about marine litter, Down to Earth, 20 February 2023

          Author

          Namrata Rana
          Namrata Rana

          Partner and National Head for ESG

          KPMG in India

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