Is India shifting its focus away from the international shipping industry?

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(Commonwealth_ For centuries, India has been a prominent seafaring nation, actively participating in global maritime activities and serving as a vital supplier of manpower to the shipping industry. From ancient times to the present, India has developed a well-established ecosystem that trains and prepares a significant number of candidates for careers in shipping each year. Indian seafarers are in high demand worldwide due to their professional competence. In addition to manning ships under various flags, Indian seafarers hold key positions in the global shipping industry.

According to the 2021 BIMCO Manpower Report, which is published every five years, India ranked as the fifth largest supplier of manpower to the global shipping industry. Alongside the Philippines, the Russian Federation, Indonesia, and China, India was one of the top five countries supplying a significant portion of the global seafaring workforce. These five nations collectively accounted for 44% of the world’s supply of seafarers. Specifically, India contributed 250,071 active seafarers in 2021, comprising 151,840 Ratings and 98,231 Officers.

Interestingly, Chinese seafarers mainly serve their own national flag or coastal ships, largely due to language barriers, which limit their global reach. On the other hand, Indian seafarers have a more international presence. The Directorate General of Shipping of India reported that by 2023, the number of active Indian seafarers had increased to 285,454, including 179,828 Ratings and 105,626 Officers. These seafarers serve on both Indian and foreign-flagged vessels.

This represents a 6.85% increase over the 2021 figures, despite the COVID-19 pandemic, which imposed significant restrictions on the travel of Indian seafarers. The outbreak of COVID-19 in 2020 slowed the growth in employment for Indian seafarers, as many countries, including China and Australia, imposed additional quarantine measures on them. These restrictions resulted in job losses for Indian seafarers. However, the situation has gradually improved, with Indian seafarers slowly reclaiming their lost opportunities.

Before the pandemic, the number of Indian seafarers had been on a steady rise. In 2010, there were only 62,267 seafarers, but this number swelled to 285,454 by 2023. This impressive growth reflects a compound annual growth rate (CAGR) of 12% over 13 years. The surge in numbers can be attributed to the Indian government’s decision to open Pre-Sea Training in shipping to private players, which led to the establishment of over 130 training institutes offering pre and post-sea training courses in shipping across the country.

Despite this substantial increase in the number of Indian seafarers, there is still considerable room for growth. India is currently the fifth-largest supplier of seafarers, contributing just 7% of global demand. This figure is surprisingly low, especially given India’s status as the most populous nation on earth with a large, youthful population. In a country facing a high unemployment rate, it is worth questioning why only 0.2% of India’s population is employed in this industry, particularly when the global shipping industry has room for expansion.

A key issue contributing to this underutilization is the unemployment faced by entry-level seafarers, both Ratings and Officers. Shipowners and ship managers often prefer to hire experienced seafarers, which creates barriers for new entrants. To address this, it is essential to regulate the entry of seafarers into the industry by focusing on high-quality training that adds value. By doing so, India can ensure that its seafarers remain competitive and in demand worldwide.

There is a need for strategic efforts to further enhance India’s presence in the global maritime workforce. By improving training standards and aligning them with international requirements, India can boost the employability of its seafarers, reduce unemployment rates within the industry, and potentially increase its share of the global maritime labor market.

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