At the ‘Revitalising India’s Maritime Manufacturing Conference’ in Mumbai, Petroleum and Natural Gas Minister Hardeep Singh Puri said India’s rapid economic growth is closely tied to the progress of its energy and shipping sectors, which together form the backbone of national development.

He noted that India’s GDP now stands at around USD 4.3 trillion, with nearly half driven by the external sector—exports, imports, and remittances—highlighting the importance of shipping in India’s trade-led growth.

Speaking on the energy front, Puri said India consumes about 5.6 million barrels of crude oil daily, up from 5 million barrels four and a half years ago. At this pace, demand will soon reach 6 million barrels per day. According to the International Energy Agency, India will contribute nearly 30 per cent of the global rise in energy demand over the next two decades, up from the earlier estimate of 25 per cent.

During 2024–25, India imported 300 million metric tonnes of crude and petroleum products and exported about 65 million metric tonnes, with oil and gas accounting for nearly 28 per cent of total trade volume. The Minister said India meets 88 per cent of its crude oil and 51 per cent of its gas needs through imports, underscoring the shipping sector’s role in ensuring energy security.

Puri highlighted that freight costs form a major portion of the import bill—around USD 5 per barrel from the US and USD 1.2 per barrel from the Middle East. Over the last five years, Indian PSUs like IOCL, BPCL, and HPCL have spent nearly USD 8 billion on ship charters, an amount sufficient to build a fleet of Indian-owned tankers.

Currently, only 20 per cent of India’s trade cargo is carried on India-flagged or India-owned vessels. To address this, the government is advancing measures such as aggregating PSU cargo demand, promoting the Ship Owning and Leasing (SOL) model, establishing a Maritime Development Fund, and implementing Shipbuilding Financial Assistance Policy 2.0 with enhanced support for LNG and ethane tankers.

Puri said India’s port capacity has surged from 872 million metric tonnes per annum in 2014 to 1.68 billion tonnes today, while cargo volumes rose from 581 million to 855 million tonnes. Efficiency has also improved, with turnaround time reduced by 48 per cent and idle time by 29 per cent. Under the Sagarmala Programme, projects worth over Rs 5.5 trillion have been mobilised to modernise ports and boost coastal connectivity.

Indian shipyards such as Cochin Shipyard, Mazagon Dock, GRSE Kolkata, and HSL Visakhapatnam, along with private yards in Goa and Gujarat, are producing world-class vessels. Collaborations with L&T, Daewoo, and Mitsui OSK Lines are infusing global technology into India’s maritime manufacturing ecosystem.

The Minister stressed that shipbuilding requires long-term planning and steady orders to maintain skilled manpower and infrastructure. With global shipyards booked for up to six years, India should encourage them to invest and manufacture ships domestically.

Looking ahead, the maritime sector is projected to attract about Rs 8 trillion in investment and create 15 million jobs by 2047. India is also strengthening its position in global trade through the India–Middle East–Europe Economic Corridor and the International North–South Transport Corridor, connecting Indian ports to Europe, Central Asia, and Africa.

Concluding, Puri said that under Prime Minister Narendra Modi’s leadership, India views its oceans as pathways to prosperity. With continued port modernisation, green shipping initiatives, and shipbuilding expansion, the maritime sector is poised to become a key engine of a developed and self-reliant Bharat.