India has key role in shaping global trade, says Puri
The Indian maritime sector is expected to attract about Rs.8 trillion in investment and create around 1.5 crore jobs by 2047, Petroleum and Natural Gas Minister Hardeep Singh Puri told delegates at the ‘Revitalizing India’s Maritime Manufacturing Conference’ held in Mumbai as part of India Maritime Week 2025.
He also pointed out that India is playing a key role in shaping global trade routes through initiatives like the India–Middle East–Europe Economic Corridor and the International North-South Transport Corridor, linking Indian ports with Europe, Central Asia, and Africa.
Overall, India’s rapid economic growth is closely connected to the progress of its energy and shipping sectors, which together serve as strong pillars of national development, he informed delegates at the conference held on 29 Oct.
He highlighted that India’s economy is growing fast, with the GDP now around US$4.3 trillion. “Nearly half of this comes from the external sector, which includes exports, imports, and remittances. This shows how important trade—and therefore shipping—is for India’s economic progress,” said the Minister.
Speaking about the energy sector, Puri said India currently consumes about 5.6 million barrels of crude oil per day, compared to 5 million barrels four and a half years ago. At the present rate of growth, the country will soon reach 6 million barrels per day.
He noted the International Energy Agency forecast on India which is expecting the country to contribute nearly 30 percent of the global rise in energy demand in the next two decades, an increase from the earlier estimate of 25 percent.
He added that this growing energy requirement will naturally increase India’s need for ships to move oil, gas, and other energy products across the world.
The Minister Informed that during 2024–25, India imported around 300 million metric tons of crude and petroleum products and exported about 65 million metric tons. The oil and gas sector alone accounts for nearly 28 percent of India’s total trade by volume, making it the largest single commodity handled by ports. He said that India currently meets about 88 percent of its crude oil and 51 percent of its gas needs through imports, which shows how important the shipping industry is for the country’s energy security.
The Minister explained that the freight cost forms a significant part of the total import bill. Oil marketing companies pay around US$5 per barrel to transport crude from the United States and about US$1.2 from the Middle East. Over the last five years, Indian PSUs such as IOCL, BPCL, and HPCL have spent nearly US$8 billion on chartering ships, an amount that could have built a new fleet of Indian-owned tankers.
Puri pointed out that only about 20 percent of India’s trade cargo is carried on India-flagged or India-owned vessels. He said this presents both a challenge and an opportunity for India to increase its ship ownership and manufacturing capacity.
The government is working on steps like aggregating PSU cargo demand to give long-term charters to Indian carriers, advancing the Ship Owning and Leasing (SOL) model, setting up a Maritime Development Fund for affordable vessel financing, and implementing Shipbuilding Financial Assistance Policy 2.0 with higher support for LNG, ethane, and product tankers.
The Minister pointed out that the Indian maritime sector has seen major changes over the past eleven years. Port capacity has increased from 872 million metric tons per annum in 2014 to 1,681 million metric tons today, while cargo volumes have gone up from 581 million tons to about 855 million tons.
He said that efficiency has also improved with turnaround time reduced by 48 percent and idle time cut by 29 percent. The Sagarmala Programme has already mobilized projects worth over Rs.5.5 lakh crore to modernize ports and connect coastal regions.
He said India’s shipyards such as Cochin Shipyard, Mazagon Dock, GRSE Kolkata, HSL Visakhapatnam, and private yards in Goa and Gujarat are now building world-class vessels. Partnerships like Cochin Shipyard with L&T and Daewoo for LNG and ethane carriers, and collaborations with Mitsui OSK Lines, are helping bring global technology into Indian shipyards.
He said that the shipbuilding industry requires long-term planning and steady orders to sustain infrastructure and skilled manpower. Since many global shipyards are booked for the next six years, India should encourage them to invest and build ships in India itself.
Concluding his address, Puri said, “India sees its oceans not as barriers but as pathways to growth and prosperity. The country is modernizing ports, building more ships, promoting green shipping, and creating jobs for its youth.” He said that India is ready to work with global partners to make the maritime sector a strong driver of a developed and self-reliant Bharat. Fiinews.com
