India's shipping industry has hit rough weather in recent times. Even with the rapid increase in import-export trade in this sector, the shipping sector and ports have not gained. The situation is ironic because it was in India (Lothal) around 2500 BC that the world's first tidal dock was built.
Balakot and Dwarka were other major ports. India had established trade with Mesopotamia and also with the west. Over the years, India has offered free and fair competition to all shipping companies over the years.
In the past two years, the global oil trade and overall growth in trade have helped Indian shipping companies to improve their financial performance. The International Maritime Organization (IMO), the shipping regulatory authority, has imposed strict regulations on the shipping industry which have helped the industry's growth prospects. Moreover, creation of ITT and the implementation of tonnage tax in the previous budget have increased the profit percentages of the companies. Other issues, like freight rates, demand for tonnage, and profitability are closely linked to the general progress of the shipping companies.
The Indian National Shipowners Association wants customs duty exemptions for imported ship spares and ship repair equipments. They also want the 5% customs duty to be exempted for certain categories of vessels. Another of their demands is equality of income tax treatment of both Indian and foreign flagged ship seafarers.
Twice in the history of Indian shipping companies, in 1995-96 and 1999-2000 the tonnage crossed 7 million GRT. The recent freight market upsurge has prompted ship owners to go on an acquisition spree. At the same time, the tanker market has also witnessed a huge rise in rates. It is expected that the Indian fleet will cross the 10 million GRT mark. It was almost the golden era of Indian shipping industry.
The major sea ports of India are at Navi Mumbai, Haldia, Paradwip, Vishakahpatnam, Chennai, Tutikorin, Cochin, Mangalore, and Kandla.
