Shipping h?s pl?yed ? huge role in the Indi?n economy. Geogr?phic?lly, ?lmost h?lf of Indi?’s border is covered with se?. T?lking in terms of intern?tion?l tr?de, the ?mount of tr?de done by l?nd ?nd ?ir is very limited.
Ninety percent of Indi?’s in terms of volume ?nd seventy seven percent in terms of v?lue ?re c?rried by se?. This shows the ?mount of Indi?’s dependence on shipping. The initi?l scen?rio where Indi?’s b?l?nce of tr?de mostly showed higher imports ?s comp?red to the exports is now ch?nging. Indi?’s exports ?s comp?red to imports h?ve incre?sed to eight six percent in 2001-02 ?s comp?red to seventy five percent in 1990-91. In the ye?r 2002 ?ccording to the reports of the WTO, Indi? ?chieved fifteen percent growth r?te in exports of merch?ndise goods which m?de it second highest in the world.
Over 90% of world tr?de is c?rried by the intern?tion?l shipping industry. Without shipping the import ?nd export of goods on the sc?le necess?ry for the modern world would not be possible. There ?re ?round 50,000 merch?nt ships tr?ding intern?tion?lly, tr?nsporting every kind of c?rgo. The world fleet is registered in over 150 n?tions, ?nd m?nned by over ? million se?f?rers of virtu?lly every n?tion?lity.
Ships ?re technic?lly sophistic?ted, high v?lue ?ssets (l?rger hi-tech vessels c?n cost over US$150 million to build), ?nd the oper?tion of merch?nt ships gener?tes ?n estim?ted ?nnu?l income of over US$380 billion in freight r?tes, representing ?bout 5% of the tot?l glob?l economy. For ? country’s economy, the tr?nsport?tion sector is often viewed ?s ?n import?nt b?rometer of growth. ?s more goods ?re consumed within ? country, the tr?nsport?tion sector must grow ?ccordingly in order to ?ccommod?te the tr?nsport of ?ddition?l goods.
?nd ?s the wheels of commerce turn with ever gre?ter speed, so does the volume of p?ssenger tr?ffic. ?s ? coroll?ry, the loc?tion of m?nuf?cturing f?cilities ?nd distribution centres c?n h?ve ? m?jor imp?ct on the growth of ? country’s tr?nsport?tion sector ?nd tr?nsport?tion infr?structure. The rel?tive loc?tion of these m?nuf?cturing f?cilities ?nd distribution centres c?n dict?te whether the country becomes ? hub within ? logistics network or ? spoke in the wheel, serving in effect ?s ? tr?nsit corridor. Such m?tters ?re of p?rticul?r import?nce to emerging economies where tr?nsport ?nd logistics infr?structure is in process of r?pid development.If we look ?t the m?in drivers of Glob?l Tr?de, they ?re Profit?bility i.e. price difference ?mongst v?rious m?rkets, Risk Spre?d which reduces the dependencies on one m?rket, Uneven distribution of n?tur?l resources, Difference in level of technologies wherein some countries h?ve higher level of technology ?nd some h?ve low, Difference in cost of production bec?use ?t v?rious pl?ces v?rious industri?l inputs ?re comp?r?tively che?per e.
g. l?bour, electricity, technology, etc.If we closely look ?t exports, ? country exports ? p?rticul?r thing which it m?y h?ve n?tur?lly, for e.g.
oil, or which it produces ? lot for e.g. whe?t, etc. But the more ? country exports, the more foreign income it g?ins especi?lly in the c?se of developing countries which incre?ses its foreign reserves ?nd ultim?tely resulting in the country’s more buying power ?nd thus helping it to develop. Thus exports prove to be ? boon for ? country.