Essay
Strategic Maritime Trade: Lessons not Learnt from History

By : Anil L. Devli

Page No: 180-192

Abstract
Container shipping is essential for global commerce, accounting for over 80 percent of merchandise by volume. It has revolutionised trade, enabling efficient logistics and rapid globalisation. India's economic growth and its aspiration to become a global manufacturing hub hinge on its ability to efficiently ship goods worldwide. Container shipping supports India's import-export activities,generates employment, and drives investment in infrastructure, which is crucial for maintaining domestic supply chains and fostering regional economic integration. The article emphasises the historical and strategic dimensions of maritime trade. It traces the evolution of maritime warfare and illustrates how maritime strategies have been used to disrupt enemy economies without direct military engagement. India's container shipping capacities grew substantially with investment and policy support until 2017. However, a policy change in 2018 diluted licensing requirements for foreign ships, leading to a decline in Indian container fleet investment and increased dependency on foreign shipping companies. The document highlights the significant profits of major container shipping companies, their minimal tax contributions, and their successful tax planning strategies, which exempt them from the global minimum tax. There is an urgent need for India to develop its container shipping capacities, reduce dependency on foreign companies, ensure competitive export-import logistics,and enhance its strategic and economic security.

Author
Anil L. Devli : Anil L. Devli is the Chief Executive Officer of the Indian National Shipowners’ Association (INSA).