‘Blue economy’ is the integration of ocean economy development with values of social inclusion and environmental sustainability, along with dynamic and innovative business models. For India, however, blue economy extends beyond being merely an economic and environmental proposition. It presents India with an unprecedented opportunity to meet its national objectives, strengthen connectivity with neighbours, and exert influence in the surrounding regions. This paper argues that India should take advantage of the economic development of the Indian Ocean and examines how India can assume a leadership role in the region.
Introduction
As the economies in the Indian Ocean Region (IOR) continue to demonstrate growth and development, the region has become one of the most promising economic and political areas of the world. At the same time, rising security issues related to the critical sea trade routes, the militarisation of the ocean space, and the hunt for hydrocarbon and mineral resources are all contributing to the transformation of the IOR. Once declared as a ‘zone of peace’ by the United Nations Charter of 1971, the IOR is currently experiencing new security challenges. Under the current circumstances, the so-called ‘Blue economy’ presents a unique and unprecedented opportunity for India to reframe its approach in managing the ocean. While the economic prospects of blue economy are recognised, its potential as a political instrument is less appreciated. India must develop a comprehensive strategy to seize the potential of blue economy—by contextualising its idea and articulating why it matters to the country.
‘Blue economy’ refers to the greening of ocean development strategies towards higher productivity and the conservation of the ocean’s health.[i] In the development of oceans, blue economy adopts the principles of green economy, including low carbon emissions, resource efficiency, and social inclusion. It also features in Goal 14 of the Sustainable Development Goals (SDGs): “to conserve and sustainably use the oceans, seas, and marine resources for sustainable development.”[ii] In recent years, international support and cooperation for the development of blue economy[iii] has gained further strategic importance.
The idea of blue economy has distinct relevance to India. For a country struggling to meet its development objectives, blue economy offers another path in the pursuit of growth and development, and ecological sustainability. Although India’s policies and plans of the past have recognised the scope of ocean development,[iv] an overarching strategic vision—which incorporates the new elements such as maritime security, environmental sustainability, and new and innovative forms of cooperation—is absent. To begin with, India must consider three critical and basic intentions: national developmental objectives, connectivity infrastructure, and regional influence.
National Development Objectives
A blue economy strategy should align with the country’s national development objectives. After all, India has the seventh longest coastline in Asia at 7,516.6 km, covering nine states and two union territories.[v] These states are not only highly vulnerable to natural disasters, lacking in resilience and adaptive capacity, but are also faced with development deficits, to begin with. The coastal population of India—which stands at 560 million[vi]—is bigger than the entire population of South America. Yet, the debate around rising sea levels, pervasive fishing practices and desalination has been set by the smaller island states. This needs to change, and India must begin to take a more proactive role in global discussions on ocean resources.
These nine states and two union territories along India’s coast show distinct developmental trends (See Table 1). While Odisha, for example, has the highest poverty rate,[vii] Kerala has the largest number of unemployed people among the coastal states.[viii] As compared to other coastal states, Maharashtra has the largest contribution to India’s GDP at 14.4 percent,[ix] while Gujarat recorded the highest growth rate in 2014 in the service sector at 12.7 percent.[x]
| Table 1: Key Development Indicators for coastal states in India | ||||
| Coastal States | Poverty Rate (2010-11) | Unemployment Rate (2015-16) | GDP Contribution -(2013-14) | Service Sector Growth Rate (2013-14) |
| Gujarat | 16.63 | 0.9% | 7.31 | 12.7% |
| Maharashtra | 17.35 | 2.1% | 14.4% | 9.3% |
| Goa | 5.09 | 9.6% | 0.5% | 10.3% |
| Karnataka | 20.91 | 1.5% | 5.9% | 8.0% |
| Kerala | 7.05 | 12.5% | 3.8% | 5.5% |
| Tamil Nadu | 11.28 | 4.2% | 8.2% | 9.3% |
| Andhra Pradesh | 9.2 | 3.9% | 4.4% | 7.2% |
| Odisha | 32.59 | 5.0% | 2.6% | 8.7% |
| West Bengal | 19.98 | 4.9% | 6.8% | 9.4% |
| Daman & Diu | 9.86 | 0.3% | – | – |
| Pondicherry | 9.69 | 4.9% | 0.2% | – |
| All India rate | 21.29 | 5.0% | 9.0% | |
Source: Labour Bureau (2016), MOSPI (2015), NSSO (2011)
These coastal zones are mostly engaged in activities like fishing, agriculture, tourism, residential and commercial development, and oil exploration.[xi] Industry and service sector development in these regions have been slow, especially the mining and ocean renewable energy sectors.
Blue economic development, focused on livelihood generation, achieving energy security, building ecological resilience, and improving health and living standards of coastal communities, would reinforce and strengthen the efforts of the Indian government as it strives to achieve the SDGs by 2030.
Lessons from Other Countries’ Blue Economy
India would do well to look to other countries for examples of best practices in blue economy. The strategies of Australia, China, and Mauritius, for example, view the potential of sustainable ocean economy in meeting their countries’ development objectives. In Australia, offshore oil and gas and aquaculture industry have dominated the blue economy; in Mauritius, meanwhile, coastal tourism and seaport-related activities contribute the largest share; and for China, fisheries, tourism, and transport lead its marine economy.[xii]
The contribution of the marine services sector in economic growth and employment generation is indisputable in all these three ocean countries. The size of the blue economy is estimated to be $47 billion (2011-12) in Australia[xiii] and $90 million for Mauritius.[xiv] In China, the ocean economy contributed 4.03 percent to GDP in 2010 and employed 9.25 million people. [xv] Future plans and policies of these countries have laid additional emphasis on innovation, marine research and development, and marine information and communication technologies (ICT).
For India, the marine services sector could be the backbone of its blue economy. In line with the ‘Digital India’ and ‘Make in India’ initiatives of the Modi government, India must focus on marine ICTs, and transport (shipping) and communication services, and the creation of a knowledge hub for marine research and development, alongside the more traditional sectors like fisheries and coastal tourism. At the Indian Ocean Rim Association (IORA) Blue Economy Ministerial Conference in 2015, India emphasised on Marine ICTs as a key emerging sector of its blue economy.
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