Roadmap for Answer Writing

When addressing the question, “In the context of port-led development in India, what is the significance of the Sagarmala programme, and what challenges does it face?”, follow this structured approach:

1. Introduction

   • Briefly define port-led development and its relevance to India’s economic growth.
   • Introduce the Sagarmala programme as a key initiative aimed at enhancing port infrastructure and connectivity.

2. Significance of the Sagarmala Programme

   • Reduced Logistics Costs: Explain how the programme aims to lower logistics costs for domestic and international trade through improved port connectivity.
   • Increased Efficiency: Discuss the modernization of port infrastructure and the use of digital technologies to enhance cargo movement and ease of doing business.
   • Promotion of Coastal Shipping: Highlight the goal of increasing the share of coastal and inland waterways in transportation, which currently stands at 6%.
   • Job Creation and Economic Growth: Mention projections of increasing merchandise exports by $110 billion by 2025 and creating 10 million jobs.
   • Regional Development: Describe how the programme aims to revive trade links with regions like Africa and Southeast Asia.
   • Coastal Community Development: Discuss the focus on skill development and livelihood generation for coastal communities.

3. Challenges Faced by the Sagarmala Programme

   • Resource Mobilization: Address the difficulties in timely investment mobilization and budgetary support, as highlighted by ICRA.
   • Complex Taxation: Explain how the shipping industry is hindered by a complex tax regime that increases operational costs.
   • Poor Coordination: Discuss the inefficiencies caused by lack of coordination among various ministries, leading to delays and increased costs.
   • Environmental Concerns: Mention the risks posed to fragile ecosystems, including coastal erosion and dredging issues.
   • Disaster Vulnerability: Highlight the susceptibility of coastal areas to natural disasters like cyclones.
   • Security Issues: Discuss the potential security vulnerabilities arising from the development of numerous small ports.

4. Conclusion

   • Summarize the significance of the Sagarmala programme in promoting port-led development while acknowledging the challenges that need to be addressed for its successful implementation.

Relevant Facts

• The Sagarmala programme aims to reduce logistics costs for domestic and international trade through improved connectivity between ports and production centers .
• It is projected to increase merchandise exports by approximately $110 billion by 2025 and create around 10 million new jobs .
• Currently, only 6% of India’s transportation modal mix is through waterways, which the programme aims to enhance significantly .
• A study by ICRA highlights that mobilization of investments and adequate budgetary support are major impediments to the effective implementation of the Sagarmala project.
• The shipping industry in India faces a complex taxation regime that increases the cost of doing business .
• Poor coordination among different ministries has been flagged as a significant issue, leading to inefficiencies and delays .
• Environmental concerns include threats of coastal erosion and issues related to dredging in fragile ecosystems .
• Coastal areas are particularly vulnerable to natural disasters, such as cyclones, which pose additional challenges .
• The development of numerous small ports could increase security vulnerabilities along India’s western coast .