The Ministry of Shipping's focus on the Flag State Registry as a primary metric for India's maritime competitiveness warrants an informed commercial review. While the top 10 flag states, dominated by Liberia, Panama, and the Marshall Islands, command a significant portion of global shipping, true maritime strength lies beyond mere registration.

The following data illustrates the global flag state distribution:

*  Liberia: 16.39%
*  Panama: 14.55%
*  Marshall Islands: 11.24%
*  Hong Kong: 7.89%
*  Singapore: 6.29%
*  China: 5.39%
*  Malta: 5.23%
*  Bahamas: 3.73%
*  Greece: 1.96%
*  Japan: 1.92%

However, simply accumulating flag registrations does not translate to a robust, economically beneficial maritime sector.

Instead, we must prioritize:

*  Increasing the number of Indian officers and crew employed globally.
*  Developing India-based ship repair facilities and their supporting ecosystems, driving employment.
*  Expanding the presence of Indian technical and commercial ship management companies.

India needs an ecosystem-driven approach that fosters employment, ship repair, and overall maritime industry growth.

A "Dual Flag Registry" could be a transformative solution. This would:

*  Facilitate financing by offering greater flexibility to ship owners and investors.
*  Enhance India's global maritime role by enabling domestic players to compete on a level playing field.
*  Reduce regulatory burdens that contribute to elevated ocean freight costs, thereby mitigating cost-push inflation.

Restoring Director General Shipping (DGS) licensing process on import and export trade adds excessive regulatory control to commercial shipping operations, leading to higher freight costs and negatively impacting India's ambition as manufacturing power. Objective of the Indian Government has been to promote ease of business for industry and grow employment for shipping sector and Indian seafarers.

There is in larger national interest a need to shift focus from flag registry to a holistic, ecosystem-centric development strategy.

Implementing a Dual Flag Registry and creating a favorable maritime environment will solidify India's position as a global maritime hub, yielding significant economic advantages.

We hope this perspective will stimulate a much-needed dialogue.

About the Author

Mr. Malothram Nadar is serving as a General Manager in Indo Energy (India). He is a commerce graduate and has over 20 years of experience in supervising day-to-day port operations, including handling of Import and Export bulk cargos, loading and unloading of vessels, warehousing and arranging logistics support. 

Source: TST News Desk

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