India’s forays into the Blue Economy-Blueprint and Plans
Emergence of the Blue Economy has been an interest for both national and international interest. Historically, oceanic regions have been essential for establishing trade routes and being part of a nation’s economy. The idea of Blue Economy tends to introduce an inclusive narrative which not only tends to be a catalyst for efficient economic growth but incorporates the knowledge and importance of fisheries, aquaculture and coastal nations. The focus on the Indian Ocean Region has been both a strategic and economic priority for India. The question of Blue Economy then tends to be an analytical and empirical research onto the methodology that the subcontinent will employ for its advantage. Not only is the question of Blue Economy is an arduous attempt to establish itself successfully in the Indian Ocean Region but the implication of the approach abided by New Delhi will determine the longevity of the projects and the stability of the Blue Economy and the insight into the adoption of the approach is the question of this paper.
“Conserve and sustainably use the oceans, seas and marine resources for sustainable development”- United Nations Sustainable Development Goal (SDG) No. 14- Life below Water[1]
Indian Ocean Rim Association’s (IORA) Ministerial Meeting on 9th October 2014 held in Perth, Australia recognized a focus area for the association with emphasis on the Blue Economy. IORA specifically established this goal by looking at the potential the Indian Ocean Region holds in terms of promoting employment, food security and poverty alleviation[2]. A business model which would be inclusive of all these economic goals and trajectories comprises the vision and narrative of Blue Economy. This insight into the linkaging of economic growth, port development, international relations and maritime security highlights the opportunities and challenges for India in order to establish its foothold for blue economy.
The idea of blue economy in regards to coeval development models, represents a shift from ocean’s previous perception of free resource extraction and waste dumping. European Commission defines the concept of the blue economy as “all economic activities related to the oceans, seas and coasts''. The Government of Australia’s report titled, “Marine Nation 2025: Marine Science to Support Australia’s Blue Economy” extends this definition by adding one in which our ocean ecosystems bring economic and social benefits that are efficient, equitable and sustainable. The Indian Ocean Region’s entreaty for having the potential of optimum growth and development was articulated by Gunter Pauli in 2010 in the book- “The Blue Economy: 10 Years, 100 Innovations, 100 Million Jobs” and deliberated internationally at the United Nations Conference on Sustainable Development (Rio+ 20) in 2012[3]. A discourse was set in motion in regards to regional cooperation and influence and Indian Ocean Rim Association’s (IORA) was at the forefront to promote the establishment of Blue Economy in Indian Ocean Region. Along with Bangladesh, the Bay of Bengal partnership for Blue Economy was set in motion in 2014, followed by the IORA led conference on ‘Enhancing Blue Economy for Sustainable Development in 2015’.[4] Emergence of the IORA Declaration on “Enhancing Blue Economy Cooperation for Sustainability” led by India represented a narrative of how New Delhi was approaching the idea of Blue Economy[5]. This emphasis was further brought in national interest during the Indian Prime Minister’s statement on the Blue Economy becoming an instrument for further emphasis on Protection of Shared Marin Spaces for Security and Growth for all in the region. The idea of sustainability was conscious under the O-SMART scheme. Ocean, Services, Modelling, Applications, Resources and Technology of Ministry of Earth Sciences targets the idea incorporating technological and economic development in regards Coastal Resources preservations, water facility and safe carryout of exploration of Polymetallic Nodules from water dept. of 5500 m in site of 75000 sq.km allotted to India as per United Nations in Central Indian Ocean Basin with subsequent investigations of gas hydrates[6]. As per the scheme, India gets the advantage of regulating the use of oceanic resources and sustainability of maritime development, Integrated Coastal Zone Management under The Ministry of Environment, Forest and Climate Change (MoECC) creates special focus on the conservation of coastal and marine resources and emphasis on adequate opportunities for coastal communities.
A coeval approach to the idea of Blue Economy is targeted towards preventing any debacle of the seabed and ocean floor. The ability of oceanic regions is dependent on these specific areas as they hold the opportunities for rapid economic development. As per the United Nations Convention on Laws of Seas (UNCLOS), the defined nautical miles of Exclusive Economic Zones (EEZ) include seabed and coastal nations, which subsequently creates the limits of national jurisdiction. The potential for rapid economic development of Indian Ocean is in its beginning stage and the exact capacity for exploration and resource management is what IORA believes will be dependent on the primary data collection of EEZ[7]. In terms of equitable development, the Blue Economy has been closely associated with Marine Biotechnology as it contributes to the eco-sustainable and efficient sector of the emerging economy. This associates it with an emerging bequest of aquaculture, methodology of breeding, sustainable production and enhancing animal welfare. The pinnacle framework of recognizing the blue economy as an emerging reality is seen as a part of Intergovernmental Oceanographic Commission of UNESCO which specifically characterizes blue economy as a part of SDG No. 14 which targets reduction of marine pollution, protection and restoration of aquatic ecosystems, amortizing ocean acidification and sustainable fishing[8].
Blandishment of the 2020 report on progress towards the SDG emphasized the efforts to protect and promote small-scale fisheries as an element of Blue Economy. Assiduous approach to maximizing the potential of the Indian Ocean Region for its diversity in marine species meanwhile protecting the ocean health as per OSMART scheme, Blue Economy constitutes 4.1% of India’s economy in 2020[9]. Even though the Secretary of Ministry of Earth Sciences believes that “the number has been underestimated”, India's overall investment of Rs. 1,623 crore is specifically emphasized on extensive research and exploration of the ocean floor[10]. This incorporates R&D activities for better observations, empirical research and technological development. OSMART also focuses on inclusion of fishing communities for geographical and marine environmental knowhow of the Indian Ocean Region, as it will be an incipient for saving fuel costs. A large section of the Blue Economy focuses on fisheries, deep sea mining and offshore oil and gas[11]. Total availability of the 2.3 million square kilometers of the EEZ, 1.5 million has been explored across Bay of Bengal and Arabian Sea by India. Even though a claim of extending the nautical miles of 200 to 250 as per the UNCLOS, exploration has become a core policy for India towards Blue Economy. Blue Bonds is currently an essential way to be a Purveyor for attracting investments into the Blue Economy. The Republic of Seychelles in 2018 launched the world’s first Blue Bond which enabled a potential increment of total 15 million to advance the blue economy[12]. In 2019, Nordic Investment Bank also launched Nordic-Baltic Blue Bond which indulged towards a 2 Billion US dollar attraction of investment for wastewater treatment, preventing water pollution and climate change adaptation[13]. Morgan Stanley also sold 10 million of blue bonds to solve the challenge of plastic waste pollution in oceans in 2019 and The Nature Conservancy proposition of 1.6 US billion US dollars funding through blue bonds, sets a narrative of capital markets and utility as emerging solutions for supporting the blue economy[14]. India hasn’t yet explored this opportunity but issuing blue bonds would be an economical shift for India in terms of utilizing capital markets for promoting the blue economy. Since getting the exclusive rights for exploration of polymetallic nodules in 1987 in the Central Indian Ocean Basin, India has explored four million square miles with successful exploration of two mine sites. There is still a need for India to further invest in the exploration of these nodules as these nodules contain nickel, cobalt, iron and manganese. Indian Bureau of Mines in 2016 published the trading report that country’s entire nickel demand is being met through imports and as cobalt is limited to only 2,560 tons per year and as the two minerals cover a vast spectrum of applications extending from consumer to military applications, OSMART’s Polymetallic Nodule Programme has an established ambition. Targeting innovations in the areas of Ocean Energy, Marine Biology and Biotechnology is a strong impetus to achieve significant market shares. This impetus is potentially believed to become a catalyst in the vision of realizing the 10 Trillion Economy by 2032 and the strategic importance in light of economic growth is expected to strengthen the economy[15].
The Sagarmala Programme initiated by the Ministry of Shipping received its latest Rs. 8.5 trillion in 2018 in order to establish new mega ports and develop 14 Coastal Economic Zones and Coastal Economic Units[16]. The Project is targeting to increase the exports by US 110 billion and generate further 10 crore jobs in the fisheries[17]. Strategic implication is targeted by extensive use of IT services which seeks to modernise ports in the Indian Ocean Region. Sagarmala since 2015 has been focusing on the issue of underutilized ports. 2020 saw further allocation of Rs. 3 lakh crore to fund new 199 coastal economic developments which are planned out for further 3 years[18]. The Sagarmala Project stands as the backbone for the Blue Economy. Its pavement in 2015 has created a high multiplier effect on investment and industrial growth. The expectation of a 1,600 fleet of ships by 2025 is an ambition which includes commercial shipbuilding, repair sectors and port development which is the complementing factor to drive economic transformation as Blue Economy[19]. This initiative has been historically part of India’s diplomatic drive towards Indian Ocean even when during the Cold War era, the UN Adhoc Committee saw India’s agenda for a Zone Of Peace with these fundamentals. The question of piracy issues and securing oceanic ecosystems, The Trilateral Cooperative in Maritime Security established in 2011 amongst India, Sri Lanka and Maldives saw the 4th meet in 2020 emphasising on these issues to account for trade and commerce protection[20].
India’s approach towards the blue economy has been a narrative of evolution. The composite plan of action that the Indian Subcontinent has established towards the Blue Economy has focused on two major implications. Firstly, strategic implication has always been the priority when it comes to maintaining peace in the Indian Ocean Region. Secondly, post 2010 has seen an extensive approach which is focused on research of the marine resources and port- led development projects. Status quo, in terms of policy implications, has directed the trajectory towards exploring that potentiality for optimum economic development. Investment has been on that focus and under the overarching focus of the O-SMART scheme, India strives to maintain that balance between economic profitability and sustainable development of the maritime and coastal resources. This substantial economic potential in Indian Ocean Region has been in light towards environmental protection, national security, infrastructure creation, industrial capacity building and marine development. Success of India’s insight towards Blue Economy will be imperative upon the upcoming Budget in 2021 and how that focus is translated into policy implications. During the CoViD- 19 period, it will be essential for New Delhi to be an incipient in regards to establishing that regional cooperation. Regionalism in regards to Indian Ocean and Blue Economy needs to be in line with India's prior commitment to sustainable development framework in regards to Sustainable Development Goals. Strategic implications being tantamount to sustainability in the Indian Ocean Region will come to shape India’s approach in the upcoming years. India will strive to create a testimony in the international community and besiege the potential of Blue Economy for its overall national economic growth.
Notes
[1] United Nations. “Transforming Our World: The 2030 Agenda for Sustainable Development”. A/RES/701
[2] Atti, N. V. (2018). “Chapter 11: IORA, The Blue Economy and Ocean Governance “. Maritime Governance and South Asia, pp- 141- 163.
[3] ibid.
[4] Basu, P. Bose, S. (December 23, 2020). “Does the IOR need a cohesive Blue Economy Framework?” Observers Research Foundation, Terra Nova.
[5] Techara, J. E. (2018). “Supporting Blue Economy agenda: fisheries, food, Security and Climate Change in Indian Ocean”. Journal of Indian Ocean Region, Vol. 14(1), pp- 7- 27.
[6] Press Information Bureau (January 18, 2019). “Ocean Services, Modelling, Applications, Resources and Technology (O-SMART), Scheme of Ministry of Earth Sciences”. Ministry of Earth Sciences.
[7] Samuel. T (February 9, 2018). “Can India mine deep- sea resources without disturbing the Indian Ocean Seabed Ecosystem”. Mongabay.
[8] Roy. A. (January 18, 2019). “Blue Economy in Indian Ocean: Governance Perspective for Sustainable Development in the region”. Observers Research Foundation, Occasional Papers.
[9] Mohanty. S (January 31, 2020). “Blue Economy Comprises 4.1% of G.D.P, says Security of Earth Sciences”. Economic Times Bureau.
[10] ibid.
[11] Larik. J (2017). “Blue Growth and Sustainable Development in Indian Ocean Governance”. The Hague Institute for Global Justice Policy Brief.
[12] Press Release (October 29, 2018). “Seychelles launches World’s First Sovereign Blue Bond”. The World Bank.
[13] Ahmed. M (June 6, 2019). “Blue Bonds: What they are and how they can help the Oceans”. World Economic Forum.
[14] ibid.
[15] Patel. A (January 3, 2021). “Budget 2021 expectations I Focus should be on achieving Sagarmala targets and increasing autonomy at major ports: ICRA”. Money Control, Business.
[16] Attri. N. V (2018). “Chapter 11: IORA, The Blue Economy and Ocean Governance”. Maritime Governance and South Asia, pp- 141- 163.
[17] ibid.
[18] Maine. H, Budhraja. L(2017). “Ocean based Blue Economy: An insight into SAGAR as the Last Growth Frontier”. Niti Aayog, Office of CEO.
[19] ibid.
[20] Science & Tech (September 22, 2020). “O-SMART Scheme”. Journals of India.
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