Will the Shipping and Waterways Sector Boost Exports?

New Delhi, July 10 (NationPress) The shipping and waterways sector is poised to significantly enhance India's export capabilities as the nation aspires to emerge as the third largest economic power, according to the Minister of State for Ports, Shipping and Waterways, Shantanu Thakur, in his address on Thursday.

During a conference focusing on export logistics organized by the Confederation of Indian Industry (CII), Thakur stressed the necessity of a balanced approach to the development of all sectors.

He pointed out that minimizing the turnaround time for ships is crucial in the transportation of goods. “With 70 percent of trade conducted through shipping, there is a pressing need for significant advancements in the shipping sector,” Thakur stated.

He also underscored the importance of artificial intelligence for the comprehensive development of the shipping and logistics domain.

Furthermore, he mentioned the necessity for enhanced communication to establish a robust connectivity framework from the Northeast to the Northwest of India, ensuring effective first and last-mile connections.

Rajesh Agrawal, Special Secretary at the Department of Commerce, discussed three pivotal aspects of India's logistics evolution. He noted that the container revolution is critical in improving the role of Global Value Chains (GVC).

Agrawal also emphasized the importance of India's current and past free trade agreement (FTA) negotiations in bolstering India’s participation in GVCs, stating that identifying gaps in multimodal transport and uniting stakeholders can reduce logistics costs, thereby boosting exports and economic growth.

Additionally, Agrawal highlighted the necessity for increased air cargo, port, rail, and road space, along with enhancements in cold chain logistics for the agricultural sector.

He further stressed that to attain Net Zero emissions by 2027, India’s logistics journey must be sustainable with a minimal carbon footprint.

Vijay Kumar, Chairman of the Inland Waterways Authority, spoke about India’s transformative journey and the significance of inland waterways in achieving the ambitious $2 trillion export target by 2030 and the net-zero emission objective by 2070.

Kumar remarked, “To reduce logistics costs to single digits, we must align economic growth with sustainability, making inland waterways transport the viable solution.”

He also outlined essential government initiatives addressing key industry challenges, including water availability and draft variability, emphasizing the importance of multimodal connectivity and cargo aggregation hubs to lower first and last-mile costs.