Campaign For Sustainable Trade And Smart Ports!
The India-Middle East – Europe Economic Corridor (IMEC) was announced at the G20 Summit in New Delhi as a game-changer for catapulting Indian ports to the top of the global trade chain. This ambitious corridor is a testament to India’s unwavering resolve to strengthen its maritime trade infrastructure and a forward-thinking approach to economic growth. It also provides an opportunity to build on India’s achievements under regional security and growth for all in the region (SAGAR) and domestic Sagarmala. With the changing dynamics of global trade, India’s sea ports have made significant improvements to enhance their global competitiveness.
Infrastructural upgrades and trade facilitation, including Direct Port Entry, Direct Port Delivery, Centralized Parking Plaza, De-Congestion of Port Areas, Automated Gate Operation, and RFID Container Tracking System. The launch of the ULIP is a significant future step to bring all logistics stakeholders on a single platform. Other efficiency-driven measures such as faceless assessments, PCS, and other measures have made India’s maritime trade ecosystem more efficient, which can be seen in the 20% reduction of import release time in 2023 as reported by the latest national time release study conducted by the central board of indirect taxes and customs (CBIC).
The IMEC corridor remains in its early stages, but it provides an opportunity to look at India’s role inside and outside its borders. There is untapped potential to connect IMEC across different regions, such as through India’s current connectivity initiatives in the eastern neighborhood and with ASEAN, thus broadening the scope and impact of the corridor. To bring Indian ports up to international standards, the next stage of reforms will need to focus on continuing to strengthen the infrastructural and digital linkages. Critical issues such as low draft capacity and infrastructure for handling perishable goods enhanced last-mile connection, strong domestic logistics, port mechanization, and better inland waterways connectivity will need to be addressed. The maritime sector is an integral part of India’s global trade operations, with 95% of its international trade going through its seaports.
India’s ports have made a remarkable shift to paperless trade. However, further steps need to be taken to fully transition the trade ecosystem to paperless. This includes the integration of different systems to facilitate the exchange of messages between the trade ecosystem stakeholders, including PGA (Government Procurement Agencies) and ICEGATE (Indian Customs Electronic Commerce / Electronic Data Interchange), ICEGATE, and custodians (especially for processes like Customs’ Out of Charge). All stakeholders need to migrate to UULIP, including private stakeholders like shipping lines, container freight stations, etc. for digital message exchange.
Green initiatives such as increasing the utilization of solar energy in ports, setting standards for zero-emission trucks and port equipment, and engaging in a green shipping corridor similar to the US Singapore corridor, will be essential as India moves towards deeper integration into global supply chains. Technological innovation and infrastructure upgrades at India’s ports will be crucial as the country progresses towards its USD 5 trillion economy goal. A coordinated effort between various stakeholders in the port ecosystem and international cooperation has the potential to strengthen India’s position in global value chains. Developing smart ports and adopting sustainable practices are not only essential for India’s economic growth, but also serve as a beacon for a prosperous and environment-friendly future in global trade.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
