The Indian Shipping Industry is of paramount importance to the Indian economy. India has the largest merchant shipping fleet among the developing nations. Ports handle about 95% of the total imports/exports of both national and international cargo. In addition to this, they provide a multitude of other services including, amongst others;
- ship building,
- ship repair,
- light house facilities,
- inland water transport systems etc.
The cargo capacity of the country between the 13 major and 200 minor ports was at 1,245.3 Million Metric Tonnes in 2012 and is estimated to increase to 2493.1 MMT by 2017 . The ever increasing demand for port infrastructure and the inability of the major ports to meet the demand for required services must inevitably lead to a spillover of the excess requirement onto the minor ports, which will lead to rapid growth and increased reliance on the minor ports. To address the necessity for modern, efficient ports, the government has also allowed for upto 100% FDI in the automatic route for the construction and maintenance of ports and harbours.
The substantial tax levied, multiplicity of domestic and international regulations governing the field on account of it having to cater to demand across continents and over congestion in the major ports without making full use of the capacity of minor ports are some of the barriers faced by new entrants as well as previously established entities working in this field. Mr. PonRadhakrishnan, minister of Shipping, explaining the steps taken by the government to offset the liabilities relating to the field stated :
- The Increased power of the Ministry of Shipping giving it greater control over its finances.
- Relaxation of the stringent taxes levied under the Income Tax Act, 1961
- The streamlining the security clearing procedures.
While all of these measures indicate a step in the right direction, our expert analysis of the prevailing conditions in the market and extensive experience in dealing with matters relating to all aspects of the field will help our clients navigate the plethora of problems associated with the field. Our knowledgeable associates are ever willing to deal with and satisfactorily answer any queries that may arise at any point in this or other related fields.
Indian brand equity foundation, ” (www.Ibef.org, ) <http://www.ibef.org/industry/indian-ports-analysis-presentation> accessed 15 June 2015
Indian brand equity foundation, ” (Www.Ibef.org, ) <http://www.ibef.org/industry/ports-india-shipping.aspx> accessed 15 June 2015