India is advancing its global maritime ambitions with the Bharat Global Port Consortium, uniting public sector entities to develop and manage international ports. This initiative strengthens supply chains, supports the 'Make in India' mission, and counters China's strategic influence. Key achievements include Chabahar Port in Iran and Haifa Port in Israel. The consortium complements India's manufacturing goals and aligns with the India-Middle East-Europe Economic Corridor. By enhancing logistics and connectivity, India aims to bolster trade, regional stability, and its global maritime footprint.
India is embarking on a significant initiative to expand its global maritime presence, aiming to bolster both strategic and trade objectives by reinforcing supply chains. Ports, Shipping, and Waterways Minister Sarbananda Sonowal recently announced the creation of a consortium of state-owned companies to develop and manage international ports. This marks a pivotal step in India's vision for a global maritime footprint.
The proposed Bharat Global Port Consortium will bring together key public sector entities. India Ports Global Ltd (IPGL) will oversee port operations, Sagarmala Development Co Ltd (SDCL) will provide financial backing, and India Port Rail & Ropeway Corporation Ltd (IPRCL) will manage construction activities. The consortium's equity structure is expected to be finalized in the coming days.
India's efforts to expand its global port presence have been in motion for several years. Notable achievements include the development of Chabahar Port in Iran and the acquisition of Haifa Port in Israel by the Adani Group. The Bharat Global Port Consortium is expected to further India's strategic response to China's growing influence in the Indian Ocean region, exemplified by China's development of Gwadar Port in Pakistan under the Belt and Road Initiative. Additionally, this initiative aligns with the proposed India-Middle East-Europe Economic Corridor, introduced during the 2023 G20 Summit as an alternative to the Suez Canal.
India's drive for a global maritime network stems from its aspiration to become a manufacturing powerhouse. Minister Sonowal emphasized this, stating that the Bharat Global Ports Consortium will enhance logistics, strengthen supply chains, and support the 'Make in India' initiative by boosting exports. "By developing robust port infrastructure, the Bharat Global Ports Consortium initiative will streamline logistics, strengthen supply chains, and support the 'Make in India' initiative by boosting exports," he said.
China's extensive global maritime footprint has served as a blueprint for India's ambitions. A report by the Council on Foreign Relations (CFR) revealed that Chinese entities have stakes in 129 port projects worldwide, spanning every continent except Antarctica. Of these, 115 are operational, with the remainder suspended or canceled as of July 2024. China's substantial investments in global port infrastructure have played a crucial role in its emergence as the world's largest trading nation, conducting 95% of its international trade via sea routes. The Belt and Road Initiative, launched in 2013, further accelerated China's overseas port investments, connecting Asia, Europe, and beyond through the Maritime Silk Road.
India recognizes the necessity of a comparable maritime network to achieve its manufacturing and export goals. The Reserve Bank of India highlighted this in a 2022 report, noting that poor shipping connectivity has hindered India's integration into global value chains. For instance, India's container traffic in 2020 stood at 17 million TEUs (twenty-foot equivalent units), significantly trailing China's 245 million TEUs.
In May 2024, India and Iran signed a 10-year agreement to manage Chabahar Port, a vital regional connectivity hub. This port offers India direct access to Afghanistan, Central Asia, and Eurasia, bypassing Pakistan. Plans are also underway to link Chabahar with the International North-South Transport Corridor (INSTC), which connects India to Russia via Iran. This development not only enhances trade but also holds strategic importance, positioning India as a stabilizing force in regions ranging from the Indian Ocean to West Asia and Africa. Furthermore, this initiative aligns with promoting a free, open, and rules-based international order.
India has already made strides in this direction. It operates Myanmar's Sittwe Port and has expressed interest in managing Bangladesh's Mongla Port. These efforts reflect India's commitment to pursuing opportunities in a structured and coordinated manner. With initiatives like the Bharat Global Port Consortium, India is poised to further its global maritime ambitions, ensuring both economic growth and strategic leverage in an increasingly interconnected world.
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