India is taking the next step on its way to becoming a major maritime power: more than 100 ships are to sail for the newly founded “Bharat Container Shipping Line” in future.
The Indian government announced its plans last year, but now it’s official: with the founding of Bharat Container Shipping Line (BCSL), the world’s most populous country aims to become a “big player” in global container transportation. India is still heavily dependent on foreign shipping companies – this is set to change in the future.
BCSL is to be run as a joint venture between several state-owned companies from different segments. Representatives from shipping, rail transport, port operations and the financial sector signed a letter of intent to this effect. These include the Shipping Corporation of India (SCI), the Container Corporation of India (CONCOR), several port authorities and the Sagarmala Finance Corporation. High-ranking government representatives also took part in the signing ceremony. Initial plans for BCSL had already been announced last February.
Part of the “Vision 2047”
With BCSL, India is pursuing an ambitious strategy that aims to make the country one of the largest nations in the maritime industry as part of “Vision 2047”. According to the Indian Ministry of Ports, Shipping and Waterways and SCI, India’s own liner shipping company will not only strengthen freight security in the country, but also contribute to India’s economic independence and establish a globally competitive maritime ecosystem. By the mid-2040s, BCSL aims to be one of the ten largest container shipping companies in the world, putting it in the same league as, for example, the state-run shipping company Hyundai Merchants Marine (HMM) from South Korea.
According to Ashwini Viashnaw, Indian Minister for Railways, the establishment of the shipping company will turn a “decades-old dream” into reality. With a budget of 10,000 crore (around 1.1 billion dollars), domestic container production is also to be expanded in order to support the supply chains.
India’s maritime strategy is based primarily on shipbuilding in addition to its own liner shipping company. Despite large shipyards – such as the state-owned Cochin Shipyard in the southwest of the country – India is currently only in 20th place in the global rankings, while its northern neighbor China is the undisputed market leader with more than two thirds of all new construction orders, followed by South Korea and a weakening Japan. At the beginning of the year, the Indian government decided to provide funding of $5.4 billion to massively expand shipbuilding. The money is to flow partly into direct subsidies for shipbuilding companies and partly into the infrastructure of the shipyards. India wants to make it into the top 10 by 2030 and even into the top five by 2047.
Partnerships with Europe and the USA
The founding of Bharat Container Shipping Line comes at a time of geopolitical realignment. After around two decades, the European Union recently concluded a comprehensive free trade agreement with India, which will also open up the closed market to German companies. Chancellor Friedrich Merz traveled to India in advance for extensive talks with President Narendra Modi to explore economic cooperation. At the same time, the United States under Donald Trump is also pursuing new goals on the subcontinent; among other things, the two countries agreed that India will buy energy and raw materials from the USA, while Trump will lower tariffs in return.
The “Vision 2047” could play a key role in the development of these partnerships. For India, having its own shipping company means less dependence on international markets and transshipment points in the Southeast Asian region. By investing in shipbuilding, the world’s largest democracy could also become an attractive production location and an alternative to China. However, only the next few years will show whether the investments in these strategic sectors will pay off.
