Blue Economy- Significance and Challenges
The ‘Blue Economy’ has been recognized as a key driver of economic growth in achieving a developed India by 2047. While it holds substantial potential for national development, it also encounters various constraints and challenges. Overcoming these obstacles will be pivotal in fully harnessing the sector’s true potential.
Understanding the ‘Blue Economy’ and its Scope in India
What is the ‘Blue Economy’?
According to the World Bank, the blue economy refers to the sustainable development of ocean resources to promote economic growth, enhance livelihoods, and generate employment opportunities, all while preserving the health of the ocean ecosystem. This concept was initially introduced by Gunter Pauli in 2010 in his book ‘The Blue Economy: 10 Years, 100 Innovations, 100 Million Jobs’.
Extent of ‘Blue Economy’ in India
The blue economy in India encompasses various sectors such as fisheries, aquaculture, shipping, coastal tourism, renewable energy from the ocean, and marine biotechnology. These sectors contribute significantly to India’s economic growth and development while ensuring sustainable use of oceanic resources.
Components of the Blue Economy
- Renewable Energy: Renewable and sustainable marine energy resources, such as offshore wind and tidal energy, play a crucial role in the blue economy’s sustainable development.
- Fisheries: Sustainable management practices ensure continuous fish supply, supporting economic growth while conserving fish stocks and marine ecosystems.
- Maritime Transport: Sustainable and secure maritime transport systems connect nations and facilitate global trade, enhancing economic interconnectedness.
- Tourism: Ocean and coastal tourism provide recreational opportunities, foster job creation, and contribute significantly to economic growth within the blue economy.
- Climate Change Mitigation: Oceans serve as vital carbon sinks, absorbing and storing carbon dioxide, thereby playing a critical role in mitigating climate change impacts.
- Potential for Global Economy: Oceans contribute approximately 3-5% of global GDP and facilitate over 80% of international goods transportation. The UN has designated 2021-2030 as the ‘UN Decade of Ocean Science for Sustainable Development’ to further harness oceanic potential.
- Extent of Blue Economy in India: India’s coastline spans over 7,500 km across 9 states, with an Exclusive Economic Zone (EEZ) exceeding 2.2 million square kilometers. The blue economy currently constitutes approximately 4% of India’s GDP and is poised to expand significantly in the coming years.
Significance of Blue Economy for India
The blue economy holds substantial potential to bolster India’s economic growth through various avenues:
Oceanic Resources
- Fisheries: Indian marine fisheries contribute significantly to the country’s agricultural and allied exports, with approximately 3.7 million metric tons (MMT) produced in 2019-20.
- Rare Earth Minerals: India’s continental margins are rich in heavy and rare earth minerals like ilmenite, magnetite, monazite, zircon, and rutile.
- Hydrocarbons: Oceanic seabeds are a vital source of hydrocarbons, with India having 26 sedimentary basins covering a total area of 3.4 million square kilometers.
- Renewable Energy: Offshore regions offer immense potential for renewable energy sources such as offshore wind, waves, ocean currents, tidal currents, and thermal energy.
Ports, Shipping, and Marine Tourism
- Port-led Development: India is focusing on port-led development, leveraging its extensive port connectivity network comprising 200 ports, including 12 major ports that handled 541.76 million tonnes in FY21.
- Shipping and Maritime Transport: India boasts one of the largest merchant shipping fleets among developing countries, handling approximately 95% of the country’s trade volume and 68% by value through maritime transport.
- Coastal Tourism: Coastal tourism has significantly contributed to India’s overall tourism sector growth and livelihood creation.
Ocean Science and Services
- Observations, Data, and Information Services: Oceanic data and information services provide crucial insights for marine fishery advisories, ocean state forecasts, tsunami and storm surge early warnings, sea level rise monitoring, and oil spill trajectories, enhancing the safety and livelihoods of coastal communities.
- Conservation of Marine Biodiversity: Sustainable utilization of oceanic resources aids in the conservation of marine and coastal biodiversity.
- Employment Opportunities: The blue economy offers substantial employment opportunities, particularly for India’s youth population, across sectors such as fishing and aquaculture, marine tourism, and shipbuilding.
Challenges Associated with the Blue Economy in India
- Overfishing: Overfishing poses a significant challenge in India’s coastal waters, leading to the depletion of fish stocks and detrimentally affecting marine ecosystems. For instance, fishery resources in the Palk Bay Area have been depleted due to practices like bottom trawling.
- Marine Pollution: Pollution from sources such as oil spills, plastic waste, and industrial effluents adversely impact marine ecosystems and pose threats to the blue economy. An example includes the oil spill in Chennai originating from the Chennai Petroleum Corporation Ltd (CPCL’s) refinery.
- Infrastructure Deficiency: The lack of adequate ports, airports, and road connectivity hampers the development and expansion of economic activities in coastal regions.
- Piracy and International Conflicts: Piracy in the Indian Ocean region, particularly near the Red Sea, and insecurity in sea lanes of transport pose significant threats to India’s shipping industry. Additionally, geopolitical tensions and disputes over maritime boundaries, such as the India-Sri Lanka Fishing Conflict, present challenges.
- Climate Change: Climate change impacts such as rising sea levels, negative Indian Ocean dipole effects, and intensified cyclones pose risks to coastal communities and have adverse effects on the blue economy.
Government Initiatives for the Development of Blue Economy
Sagarmala Project: Focuses on comprehensive port infrastructure development along India’s 7,516-kilometer coastline. It aims to achieve modernization, mechanization, and computerization of ports.
- Projects: Initiatives include Coastal Infrastructure Development, Coastal Industrial Development, Coastal Community Development, and the Development of Coastal Tourism.
Integrated Coastal Zone Management Plan (ICZM): It is ICZM is a holistic approach to managing coastal areas sustainably, integrating environmental, social, and economic aspects to preserve coastal ecosystems.
Deep Ocean Mission: India’s ambitious Deep Ocean Mission aims to explore and harness the vast potential of ocean resources. It addresses scientific and economic challenges associated with ocean exploration and resource utilization.
O-SMART: It encompasses 16 sub-projects aimed at advancing ocean development activities. These include Services, Technology, Resources, Observations, and Science to enhance India’s capabilities in ocean monitoring and management.
Way Forward
- Skill Development Initiatives: Implementing skill development programs alongside the preservation of traditional knowledge is crucial to unlocking the full potential of the blue economy and fostering inclusive prosperity.
- Establishment of Blue Diplomacy Cadre: Establishing a dedicated ‘blue diplomacy cadre’ through initiatives like SAGAR, IORA, BIMSTEC, and SAARC in the Indo-Pacific region is essential. This cadre would facilitate peaceful resolution of international disputes and ensure the security of global maritime transport routes.
- Adoption of Coastal and Marine Spatial Planning: Adopting a scientific approach to coastal and marine spatial planning is imperative. This involves analyzing and allocating coastal and marine resources across spatial and temporal scales, promoting sustainable fisheries development, and optimizing the use of oceanic mineral resources.
- Implementation of Proper Waste Disposal Policies: Enacting and enforcing robust policies for waste disposal, such as the elimination of plastic and national marine litter policies, is essential. These policies aim to prevent pollution and the accumulation of marine debris, safeguarding marine ecosystems and the blue economy.
- Investment in Research and Development: Allocating funds for research and development in emerging fields of the blue economy—such as marine biology, marine technology, marine chemistry, geology, shipping, and oceanography—is critical. This investment will drive innovation and sustainable growth in ocean-related industries.