Progress of the shipping industry

The Indian shipbuilding industry is on a high growth trajectory and is expected to

grow at a compounded growth of 30%. Though India has not yet become a
significant player in the global shipbuilding business, it has gained a strong
foothold in the niche offshore segment.

India’s share in the world market has gone from an insignificant low of 0.1% in
the beginning of 10th Plan to 1.3% in 2006. Hence from an an inward looking
industry dependent on government orders, the Indian shipbuilding industry is
emerging as internationally competitive export led industry.

Nevertheless, the industry is still in its nascent stage and dependent on

government support for subsidy. The industry is expected to become self
sufficient in 10 years time and will no longer require subsidy thereafter. It is clear
from the above that India can grow in the shipbuilding sector
in a healthy manner if shipbuilding is recognized as a strategic industry and if it
can enjoy simple taxation policies with a fully empowered regulating body for
quick decision-making .

Tracking India’s performance:

India has 23 shipyards, of which 7 are under administrative control of the central
government, 2 with state governments, and the rest in the private sector.

The current shipbuilding capacity of India is only 2,81,000 DWT, which is quite
undersized according to global shipbuilding standards, and inadequate given the
country's requirements. A comparison of productivity shows that while China
may be well ahead of India in total ship building, it’s productivity is almost the
same as India and this is one area that India can take a lead on the strength of
its IT industry and setting up new The fact however remains that India’s
contribution is tending towards being a significant component in the global
shipbuilding industry and that we need to get our act together to use this very
promising window of opportunity. With the exponential growth in the number of
ships calling on Indian ports, providing ship-repair facilities is becoming an
increasingly attractive opportunity. Not only does ship-repair and building
activity help generate substantial local jobs, it also builds the capacity of The
shipbuilding industry is now witnessing a growth phase after a gap of almost 25
years. This is an opportunity for India to revive its shipping industry and bring it
at par with the rest of the world.
It is essential for India to put together strategies, which could lead to optimal and
effective contribution towards the global shipbuilding industry. Infact the time is
just ripe for India to carve a niche in this sector. However in order to achieve this
objective, it would be imperative to address concern areas which could be
detrimental to the future progress of the sector:local industry. modern shipyards.
Worldwide the shipyards are full and the world is turning to India to meet its
requirements. After all, China and India have the skills and cheap steel to make
the best and cheapest ships.

The successful shipbuilding industrial development of Japan, Korea and China

has not happened by chance but by a carefully crafted policy where the
government has provided the core administrative guidance and support. Such an
integrated policy initiative would be required for the revitalisation of the Indian
ship repair industry as well so that conditions are created for the Indian firms to
become technological leaders instead of followers, through promoting
competition, cooperation and even acquisition and Joint Ventures with leading
foreign yards.
The Indian Government has been trying various promotional and subsidy
measures since the 70’s which managed to keep the industry alive at a time
when the global industry was passing through a deep recession after the boom
of the 70’s which, the country missed due to lack of industrial growth.

The Indian shipbuilding industry had always been dogged by low capacity, poor
productivity and lack of modernisation. Thanks to the gradual shift of
shipbuilding from Europe to Asia, today contrary to expectations the Indian
Shipbuilidng order books stand at 1.3 million DWT. This has been possible on
account of the shipbuilding boom and both foreign/Indian Shipping Companies
are coming forward to place new building orders on Indian Yards. This has
enabled the industry’s order books to grow from Rs 1500 crs in 2002 to Rs
14,000 crs (roughly 3060 m $) in 2006
The growth of Chinese shipbuilding industry is now becoming a threat to almost
all major shipbuilding nations as China is planning to become the leading
shipbuilding nation with an aim to corner more than 30% global share by 2015.
India is probably the only country that will be able to match the Chinese prices
with its relatively low labour costs and industrial base for manufacture of
equipment.

Progress of the aviation industry

The Indian aviation industry has witnessed an impressive growth during the past
few years, with major contribution from the civil aviation segment. The market
has been strongly supported by the government and the private sector.
Availability of skilled manpower along with favourable business environment will
position India as one of the most attractive investment destinations in the
coming years. It is currently the 9th largest aviation market in the world. On the
basis of strong market fundamentals, it is anticipated that the civil aviation
market will register more than 16 per cent CAGR during 2010-2013.

Mr Praful Patel, Union Civil Aviation Minister has stated that the airline industry in
India has grown by 400 per cent in a short span of about six-and-a-half years. He
said in 10 years Indian market will be the third largest aviation market after the
US and China

Passengers carried by domestic airlines from January – June 2010 were 46.8
million as against 39.4 million in the corresponding period of year 2009 thereby
registering a growth of 18.9 per cent - according to data released by the
Directorate General of Civil Aviation (DGCA).
Some US$ 100 billion in aircraft orders will be up for grabs over the next 20
years. Boeing's current market outlook (2009-2028) predicts that the country will
require 1,000 aircraft worth US$ 100 billion over the next two decades,
according to Dinesh Keskar, President of Boeing and FICCI Aviation Committee
chairman.
Investment opportunities of US$ 110 billion are being envisaged up to 2020 with
US$ 80 billion towards new aircraft and US$ 30 billion towards the development
of airport infrastructure, according to the Investment Commission of India.

Indian Aviation Industry includes come of the premier airlines world wide. The
latest news from the Aviation Industry of India tells us that many new flights in
affordable rates are being launched everyday. Presently India has a large
number of international airports more than 90 domestic airports, civilian
enclaves, and many aviation schools in India

The “Airport Authority of India” is planning to invest millions of money for the up
gradation and developments of airports.

An overview of the Aviation Industry in India shows that in near future the civil
aviation industry will continue to maintain an upward trend of progress. The
Indian aviation industry has observed a huge change. Today, the emergence of
private airlines has made traveling by air open to large number of people and
not just the leisure and business travelers. Modern and new airports are being
set up.

Railways
The Railways in India provide the principal mode of transportation for freight and
passengers. It brings together people from the farthest corners of the country
and makes possible the conduct of business, sightseeing, pilgrimage and
education. The Indian Railways have been a great integrating force during the
last more than 150 years. It has bound the economic life of the country and
helped in accelerating the development of industry and agriculture. From a very
modest beginning in 1853, when the first train steamed off from Mumbai to
Thane, a distance of 34 kilometres Indian Railways have grown into a vast
network of 6,909 stations spread over a route length of 63,327 kilometres
with a fleet of 8,153 locomotives, 45,350 passenger service vehicles, 5,905 other
coaching vehicles and 2,07,719 wagons as on 31st March, 2007
The main objectives of railways planning have been to develop the transport
infrastructure to carry the projected quantum of traffic and meet the
developmental needs of the economy.
. During the Plans, emphasis was laid on a comprehensive programme of system
modernization. With capacity being stretched to the full, investment of cost
effective technological changes become inescapable in order to meet the ever-
increasing demand for rail transport

Roadways
The Indian Roadways play a crucial role in connecting the different parts of India.
Over the years after independence there has been an extensive development of
the network of roads across the length and breadth of India. Road network of
India is the largest road networks(3.314 million kilometers ) in the world.
Roads are most preferred modes of transportation and considered as one of the
cost effective modes of transportation. Roads are easily accessible to each
individual. An efficient and well-established network of roads is desired for
promoting trade and commerce in any country and also fulfills the needs of a
sound transportation system for sustained economic development. Road
transport is contributing 3.69% to GDP where as all transportation modes are
contributing a total of 5.5% to GDP.