The Kochi International Container Transhipment Terminal (ICTT)
If India wishes to prosper alongside other nations in the near future they must allow foreign investments to participate in encouraging their growth. India must make a decision about whether to reduce barriers on foreign domestic investment or not. The benefits awarded to the country by reducing their barriers and policies to foreign domestic investments, would boost India’s economic growth and worldwide appeal.
Reducing barriers on traditional policies can do a lot for the economy of India, especially when considering their future. If India intends on making their global trade share stronger they must eliminate policies, and reach a consensus with foreign investors. However, in order for investors to participate, improvements to policies that will promote the development of a dynamic and efficient financial sector are urgently needed. Currently recognized as the world’s 19th largest exporter and 10th largest importer, the shipping ports in India can improve those trade numbers significantly by partnering with other prospering nations.
At the moment, trade and foreign direct investment obstacles remain strong in some key sectors, impairing India’s productivity and move toward improvements in policy. If India plans to become one of the top economies in the world, it must establish and amend rules to allow themselves to achieve that goal. For example, reducing policies in industries such as the shipping or logistics, would benefit India immensely. It has been suggested that through the introduction of foreign investment in these two key areas, that the country’s gross domestic product will improve exponentially, as well as their efficiency and effectiveness; within the global marketplace.
What is currently happening in India is an example of the continuing laying of the foundation, for the new global shipping trade system, that most every other country in the world; is now preparing/prepared for. India is a great example of how a country’s economy evolves and grows into what is considered to be an “emerging market”. Basically going from an economic status of poor to prosperous. India, with a growing population of over 1 billion, is considered to be one of the world’s new emerging markets. It’s large population base is now beginning to show signs of prosperity and that is encouraging investments, both local investors and abroad. Historically, it always has shown that foreign investments are absolutely necessary to grow a poor economy into a prosperous one. India, with regards to it’s enormous population, certainly is the one emerging market in the world; that has the biggest potential for investors.
India’s enormous potential for future prosperity has been clearly recognized by DP World. Majority owned by the Dubai Government, it is India’s largest container port operator, with five terminals that accommodate close to 40 per cent of the country’s container volume. In 2012, DP World’s five terminals in India handled 3.92 million TEUs shipping containers, out of the total 9.8 million TEUs handled by all other ports; in India. The company is not the only one preparing to gain further access to Asian markets, private investors and businesses are taking a keen interest in the emerging market, as India’s economy continues to grow, expand and prosper; alongside China’s.
Besides it’s container terminals, DP World’s Container Rail Road Services Pvt Ltd, has a category-I licence from the Railways to operate container trains. The company moves containers by rail and road, providing connectivity between the ports and the hinterlands. This kind of foreign investment in emerging markets, related to transport infrastructure, not only creates local jobs and generates prosperity; it also lays the foundation for an efficient trade transport system in the future. It is a win-win situation. DP World sees the vast potential for profitable investment opportunities, and has been quick to meet an increasing demand in India, as their economy grows steadily.
Although India is still struggling to gain some momentum, their economic growth continues to amaze investors, analysts and economists. Even with the many challenges that are to come in the future, at least now there seems to be a more certain and defined path to prosperity, that is beginning to unfold in India; as the nation prepares to become active contributors in the new global economy. India has been a poor country for a long time, and now it is slowly emerging to become one of the most prosperous regions in the world. When it comes to investing in emerging markets, India has a great deal to offer the international investment community, as well as; shipping industry leaders.
Germany offers expertise. India offers emerging markets.
According to the World Bank, as of 2011, the Indian economy is worth US$1.848 trillion, nominally. India is one of the world’s fastest growing economies, however, the country ranks 140th worldwide in gross domestic product (GDP) per capita contributing to their ideal standard of living. In 2011, India was ranked as the world’s tenth largest importer and the nineteenth largest exporter. In recent times, India has invited foreign investments within different industrial sectors, one of which being the shipping sector.
The agreement between India and Germany on Maritime Transport Relations was signed in 1966 and is still in place. This agreement can simply be updated by extending the areas of cooperation to meet both needs of these countries within the shipping sector. With that understanding, India has invited German companies, to invest within their shipping sector. This can be beneficial to both regions, as India gains the German’s expertise in shipbuilding and the shipping industry, while German investors gain access to emerging markets; of which they can improve their economic future. Germany can also benefit from India’s labor force, as it is second largest in the world. German companies have expressed their confidence in this investment proposal, since 100 percent foreign domestic investment (FDI) is allowed in the shipping sector in India, and also closely considering; India is emerging as a transshipment hub and cruise destination.
India is eager to improve their overall position, within the shipping industry. German expertise in areas like reducing congestion at ports, information technology for the movement of container traffic and maritime training, can help India’s economy take an enormous leap forward. India understands that the shipping industry is a global industry which is closely linked economic prosperity. As decisions are being made worldwide to upgrade and modernize ports, India sees another alternative in which they can prosper. German company investments within India’s shipping sector, would contribute to economic growth and spare India the heartache of missing out on the expanding shipping industry. Reaping profits without any personal investment is India’s game. While there are mutual benefits in almost any case, some competitive countries would jump at the opportunity to expand their shipping industry, within India.