Need support for do­mes­tic ship­build­ing

An Exim Bank study says the global ship­build­ing in­dus­try wit­nessed a con­tin­ued con­trac­tion dur­ing the pe­riod 2008 to 2012, with global ship­build­ing or­der book po­si­tion de­clin­ing from 368 mil­lion GT in 2008 to touch a low of 160 mil­lion GT in 2012.

Cargo Talk - - Case Study - CT BUREAU

The de­vel­op­ment of a suc­cess­ful ship­build­ing sec­tor has been piv­otal to the rapid and ro­bust eco­nomic de­vel­op­ment in most coun­tries in the world with long coastal bound­aries.

Ship­build­ing in­dus­try has the po­ten­tial to sig­nif­i­cantly con­trib­ute to na­tional Gross Do­mes­tic Prod­uct (GDP). The sec­tor has an im­mense di­rect and in­di­rect pos­i­tive im­pact on most other man­u­fac­tur­ing and an­cil­lary in­dus­tries, be­sides its huge de­pen­dence on in­fra­struc­ture and ser­vices sec­tors in an econ­omy.

Ac­cord­ing to Exim Bank study, the global ship­build­ing in­dus­try wit­nessed a con­tin­ued con­trac­tion dur­ing the pe­riod 2008 to 2012, with global ship­build­ing or­der book po­si­tion de­clin­ing from 368 mil­lion Gross Ton­nage (GT) in 2008 to touch a low of 160 mil­lion GT in 2012. The in­dus­try in ma­jor ship­build­ing na­tions such as China, South Korea, Ja­pan, Philip­pines, Brazil, Viet­nam and In­dia wit­nessed this con­trac­tion.

How­ever, re­flect­ing the re­cent pickup in global trade wit­nessed in 2013, the global ship­build­ing in­dus­try has also wit­nessed a re­bound to touch 182.9 mil­lion GT in 2013. All the ma­jor ship­build­ing na­tions, ex­cept In­dia, have also regis­tered turn­around in the in­dus­try. The Big3, viz. China, South Korea, Ja­pan, dom­i­nate the global ship­build­ing in­dus­try, to­gether ac­count­ing for as much as 87 per cent of the global in­dus­try in 2013.

Other coun­tries, such as Philip­pines, Brazil and Viet­nam, in re­cent years, have also emerged as im­por­tant ship­build­ing na­tions, re­flect­ing the strong in­sti­tu­tional and pol­icy support by re­spec­tive gov­ern­ments.

The study high­lights that In­dia ranks amongst the ma­jor global ex­porters of ships and boats. Re­flect­ing In­dia’s po­ten­tial, In­dia’s ex­ports of ships and boats have wit­nessed a steady and sharp rise dur­ing the pe­riod 2002 to 2011, sig- nif­i­cantly in­creas­ing from a mar­ginal US$ 56 mil­lion to US$ 7 bil­lion dur­ing the pe­riod. Re­flect­ing its global ex­port ca­pa­bil­ity, In­dia ranked as the 4th largest global ex­porter of ships and boats, ac­count­ing for 3.7% of global ex­ports dur­ing 2011. How­ever, with the slump in global de­mand In­dia’s ex­ports of ships and boats too mod­er­ated to US$ 4.1 bil­lion in 2012, and fur­ther to US$ 3.6 bil­lion in 2013, with In­dia’s rank­ing also slip­ping to the 5th po­si­tion in 2012, and fur­ther to the 7th po­si­tion in 2013.

To­wards this end, coun­tries such as Brazil, Philip­pines and Viet­nam, among oth­ers, have put in place strong pol­icy frame­work that have con­trib­uted sig­nif­i­cantly to th­ese coun­tries’ emer­gence as vi­brant and grow­ing ship­build­ing na­tions. Learn­ing from such coun­try ex­pe­ri­ences could prove to be ben­e­fi­cial in de­vel­op­ment and ex­pan­sion of In­dia’s own ship­build­ing in­dus­try.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.