The shipping and logistics industry is hoping that the government announces a slew of fresh measures to boost the industry and help India increase its share in the global map. With the ‘China + 1’ theme, India’s shipping infrastructure needs significant support to meet the world’s demands.
Currently, India has a mere 0.05 percent of the global market-share in shipbuilding. This is significantly lower than China (~47 percent), South Korea (~30 percent), and Japan (~17 percent), which currently dominate the industry.
According to Vivek Merchant, Director, Swan Defence and Heavy Industries, any emphasis on improving shipping infrastructure and promoting indigenous shipbuilding will positively impact the sector.
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Industry Wishlist
Ahead of the interim budget in 2024, the Prime Minister had launched the 'Maritime Amrit Kaal Vision 2047’, in order to support the country’s shipping, logistics, and infrastructure sector.
The Amrit Kaal Vision 2047, formulated by the Ministry of Ports, Shipping & Waterways, builds on the Maritime India Vision 2030 and aims to develop world-class ports and promote inland water transport, coastal shipping, and a sustainable maritime sector.
Industry players hope that the government will build on this momentum and allocate further resources towards the growing sector.
“It is expected that there will be more capex allotment to the ports infrastructure and announcement of measures to boost “Maritime Amrit Kaal Vision 2047” announced by the Prime Minister,” said Ashish Suman, Partner, JSA Advocates & Solicitors adding that there could be more financing allocated to upgrade existing ports into regional maritime hubs.
In a similar context, Merchant is of the view that the announcement of India’s Maritime Development Fund (MDF) for long-term indigenous manufacturing projects and the anticipated Shipbuilding Subsidy (SBS) Policy 2.0 could further strengthen the ecosystem, encouraging greater self-reliance and competitiveness.
"The government is likely to allocate funds for effective implementation of the Gati Shakti Master Plan to create a multi-modal logistics network, streamlining cargo handling and optimising supply chain efficiencies,” said Pushpank Kaushik, CEO of Jassper Shipping.
Stocks to watch
Several shipping stocks including Mazagon Dock, Cochin Shipyard, and Garden Reach Shipbuilders have corrected from their all-time highs recorded in July 2024, before the Union Budget for 2024 was presented. Since last year's presentation, these shares have been on a corrective mode. Investors hope that this Budget could turn the tides for these stocks by including favourable policy announcements.
Stocks like Shipping Corporation of India and Great Eastern Shipping will also remain in focus on the day of the Budget. Investors should also keep an eye on Adani Ports and SEZ along with JSW Infrastructure, given their strategic importance and potential benefits from government measures aimed at boosting port infrastructure.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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