India, with a coastline of 7,516.6 km and over 200 ports, ranks as the 16th largest maritime nation. Despite its strategic advantages and a skilled workforce, the country faces significant challenges, including heavy reliance on foreign vessels for trade and limited financial support from banks. In contrast, Vietnam has successfully established a robust maritime financing system through public-private partnerships, enabling a thriving ecosystem of ports and fleets.
The Indian government is attempting to revitalize its maritime sector through initiatives like the ₹25,000 crore Maritime Development Fund and revamped financial assistance policies. However, many small and medium-sized enterprises still struggle with access to affordable financing, hindering their growth and innovation.
Vietnam’s maritime success stems from specialized vessel financing, collaboration between banks and government, and an integrated financial system. Indian banks, however, often provide high-interest, short-term loans, limiting support for long-term maritime projects. Additionally, the lack of collaboration with global financial institutions and a narrow insurance market further exacerbate India’s challenges.
To enhance its maritime sector, India could adopt maritime-specific financial schemes, treat ships as collateral for loans, and foster partnerships to share risks. By prioritizing maritime finance, India can unlock significant economic opportunities and strengthen its global maritime standing.
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