Policy Update
Srishtistuti Roy
Background
The philosophy of the Blue Economy (BE) was first introduced by Prof. Gunter Pauli in 1994 at the United Nations University (UNU) to address the needs and challenges of sustainable growth amidst the multifarious threats posed by global warming. It emphasised the necessity for new models of development which would follow the vision of zero-waste and reduced emissions. The concept gained prominence at the Rio+20 Earth Summit in 2012, driven by the advocacy of the Small Island Developing States (SIDS), which underscored the limitations of the Green Economy model in addressing the unique characteristics and challenges of coastal and marine economies.
Accordingly, a key focus area of the Summit was to expand the Green Economy framework to incorporate the Blue Economy (BE) as a policy priority for achieving inclusive, equitable, and sustainable economic development. The concept further seeped into the consciousness of academics and policymakers following the adoption of Agenda 2030, particularly SDG 14, which sought to “conserve and sustainably use the oceans, seas and marine resources for sustainable development.”
Though there is no consensus about the definition of the term, in common parlance the Blue Economy (BE) has come to refer to the sustainable use of marine resources for developmental purposes– such as energy extraction, economic growth, food sovereignty, enhanced connectivity, and maritime security– without harming the health of ocean and coastal ecosystems.
Source: National Maritime Foundation
Different countries have tailored the framework to align with their geopolitical priorities and specificities, referring to it variably as the coastal economy, marine economy, or ocean economy. It encompasses diverse sectors including maritime transportation, extraction of seabed minerals and ocean resources, marine energy generation, waste management, sustainable tourism, fishing, coastal manufacturing, trading and shipping. The BE advocates for the ‘greening’ of ‘blue’ technologies to engender ‘blue growth’– increased economic productivity– while conserving the world’s oceans, which cover over one-third of the Earth’s surface.
Source: World Bank
Soon after the Rio+20 Summit, the Indian Ocean Rim Association (IORA) actively championed the BE, with India emerging as a key proponent. At the 2015 QUAD Leaders’ Summit in Mauritius, Prime Minister Narendra Modi presented the doctrine of Security and Growth for All in the Region (SAGAR), emphasising the BE and advancing the overarching vision of a ‘free,’ ‘open,’ and ‘inclusive’ Indo-Pacific.
This policy stance underscored India’s ‘maritime moment’ (Baruah, 2021), signalling the country’s commitment to a dynamic maritime foreign policy centered on geopolitical strategy, maritime security, and sustainable economic development. It also triggered a series of deliberations which culminated in the release of ‘India’s Blue Economy: A Draft Policy Framework’ by the Economic Advisory Council to the Prime Minister (EAC-PM) in September 2020; this was a milestone in the evolution of India’s BE policy.
Functioning
In January 2024 during the interim budget speech, Finance Minister Nirmala Sitharaman unveiled plans for the launch of the Blue Economy 2.0, aimed at promoting climate-resilient activities and sustainable development in coastal areas. The scheme will prioritize restoration and adaptation measures, including the rehabilitation of degraded coastal ecosystems and the implementation of strategies to address rising sea levels and extreme weather events. These actions are essential for conserving biodiversity, safeguarding coastal communities, and preserving the ecosystem services provided by marine habitats.
Additionally, the scheme will focus on expanding coastal aquaculture and mariculture through an integrated, multi-sectoral approach. This initiative aims to meet the increasing demand for seafood while alleviating pressure on wild fish stocks. By promoting sustainable aquaculture practices and integrating them with sectors such as tourism and renewable energy, the scheme seeks to create economic opportunities for coastal communities and ensure the long-term sustainability of marine resources. However, details regarding budgetary allocations and other specifics of the scheme are yet to be disclosed.
Since 2015, the Indian government has taken several policy initiatives to promulgate the ‘blue revolution’ by harnessing and simultaneously strengthening India’s BE. The Ministry of Earth Sciences (MoES), in collaboration with other ministries, serves as the nodal agency for implementing the schemes and programs aimed at realising India’s vision of the BE. Some of these include:
- Maritime India Vision 2030: This initiative focuses on port-led development, modernising port infrastructure, and enhancing maritime trade to boost the BE. One priority area of this policy is to increase India’s global share in ship building, repairing, and recycling.
- Sagarmala Programme: This flagship initiative aims to enhance port connectivity, port-led industrialisation, coastal community development, and sustainable coastal management. The interim budget for FY 2024-2025 allocated an amount of Rs 700 crore to the program with the aim of connecting Indian ports and industrial clusters through an efficient transport network.
- National Fisheries Policy: This policy provides a framework for the promotion of sustainable aquaculture, responsible fisheries management, and the welfare of fisherfolk while ensuring environmental conservation. The Pradhan Mantri Matsya Sampada Yojana (PMMSY) was a flagship financial assistance scheme for fishers under this policy.
- Deep Ocean Mission: This program aims to explore deep-sea resources, develop marine technology, and advance understanding of deep-ocean ecosystems.
- Integrated Coastal Zone Management (ICZM) Programme: Aimed at sustainable management of coastal and marine resources, this program integrates environmental concerns with developmental activities and regulates development along coastlines to protect fragile ecosystems.
- O-SMART: The Ocean Services, Modelling, Applications, Resources and Technology (O-SMART) scheme aims to generate and update information about marine living resources and their relationship with the environment in India’s Exclusive Economic Zone (EEZ). It is an umbrella scheme with sixteen sub-projects related to marine technology and ocean development.
Impact
Over the past decade, the Indian government has launched numerous economic and infrastructural initiatives along its extensive 7500 km coastline and within its 2.2 million square km EEZ through various policy measures.
- Maritime Infrastructure and Connectivity: The Sagarmala Programme has been instrumental in the modernization and expansion of ports which has improved maritime trade and logistics. This has reduced congestion at major ports and enhanced connectivity, facilitating smoother trade routes for both domestic and international markets. Enhanced coastal infrastructure including coastal roads, highways, and dedicated coastal economic zones, has spurred regional development and created new economic opportunities.
- Economic Growth and Job Creation: A surge in public and private investments across union territories and states– especially in Dadra and Nagar Haveli, Daman and Diu, Jammu and Kashmir, Rajasthan, Haryana, and Uttar Pradesh– has driven monumental advancements in the development of regional infrastructure. (Majumder, 2024). Additionally, the expansion of the maritime sector has spurred growth in coastal tourism and shipping industries, generating new employment opportunities in port cities and coastal areas. Moreover, financial assistance and nutritional support schemes for coastal communities have improved livelihoods to a certain extent.
- International Partnerships & Regional Cooperation: India has strategically positioned itself as a contending force against Chinese influence in the Indo-Pacific region through its ‘blue diplomacy’ and the SAGAR doctrine, which has culminated in several international and bilateral collaborations. Some such collaborations inter alia include– the India-Norway Task Force on BE for sustainable development; the India-EU partnership for BE and ocean governance; the India-UNESCO collaboration for development of marine spatial planning, anchored by the Singapore-Samoa-Seychelles (SSS) axis; and, Indo-Japan cooperation to advance maritime security, and joint research on blue carbon and marine biodiversity.
Additionally, foundational to India’s relations with the QUAD and BIMSTEC member nations has been cooperative efforts to combat unregulated fishing, promote marine conservation, and uphold maritime security in the region. Furthermore, in a recent bid to mitigate its own marine biodiversity challenges and to champion marine life conservation in international waters, India signed the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement or the Treaty of the High Seas in September, 2024.
Emerging Issues
Yet, the promise of the blue revolution risks replicating the very issues it seeks to address. The neoliberal nature of the Blue Economy model is grossly evident in its axiom that the oceans are a sector of limitless economic value– it is through this very logic that the health of marine ecosystems today are in jeopardy.
- Environmental Trade Offs: Profit-driven activities such as extraction of natural resources, dredging, and accretion are inherently linked to adverse environmental impacts such as coastal erosion, habitat destruction, threats to biodiversity, and displacement of coastal communities. These consequences raise significant concerns about the long-term sustainability of such mega infrastructure and industrial projects in coastal zones.
- Social Conflicts and Regulatory Loopholes: Projects such as the Vadhavan Port Project in Maharashtra, the Great Nicobar Island Development Project in the Andaman Islands, and the Adani group’s Kattupalli Port in Tamil Nadu have encountered significant opposition from local communities and environmentalists due to concerns regarding potential disruption of eco-sensitive areas, alleged non-compliance with the Environmental Impact Assessment (EIA) guidelines, and environmental degradation.
Figure: Top 10 countries providing fisheries support
- Lack of Public Support for Fisheries: A UNCTAD review report in 2023 revealed that India is the second largest exporter of ocean-based goods and services among developing countries after China. Yet, India’s fisheries rely heavily on private investments, market forces, or alternative mechanisms instead of extensive government support and incentives. This has led to the marginalisation of small-scale fishers, overfishing and resource depletion, and limited focus on sustainability.
Figure: Top 10 developing countries as ocean economy exporters, excluding China
- Capitalisation of Nature: Damle (2016) has argued that the Sagarmala programme exemplifies “ocean grabbing” by big capital. Some scholars have critiqued the privatisation of port infrastructure and ocean economy, while others have theorised the limitations and detrimental socio-environmental impacts of blue growth (Sinharay, 2023).
Way Forward
India’s approach towards harnessing the Blue Economy while attempting to preserve it has been ambitious. Through various policy measures and collaborative efforts, India has demonstrated its commitment, not only to ocean sustainability but also towards its own geopolitical aspirations. The lucrative rhetoric of blue growth and sustainability, however, has overshadowed the need for a truly inclusive, community-led development model.
India’s path forward could include prioritizing investments in research and innovation, bolstering regulatory frameworks, and strictly penalising non-compliance to ensure sustainable practices. Increasing public support for fisheries and small-scale fishers, coupled with public investments in sustainable marine technology, would strengthen local communities while protecting marine ecosystems. Additionally, stringent regulation of offshore and deep-sea resource exploration and extraction, alongside the promotion of sustainable private investments, is crucial. Formulating comprehensive mitigation measures for frontline communities most vulnerable to the effects of climate change should remain the core focus to ensure equitable and resilient development in India’s Blue Economy sector. As Sinharay (2023) has noted, “blue justice” is the need of the hour.
Citations & References
- Lesperance (2016). The Blue Economy: Origin and concept. Commonwealth of Learning.
- World Bank (2016). Blue Economy Development Framework.
- Vijay (2017). Blue Economy: A Catalyst for India’s Neighbourhood First Policy. National Maritime Foundation.
- EAC-PM, Govt. of India (2020). India’s Blue Economy : A Draft Policy Framework.
- Baruah (2021). From the periphery to the centre, India’s maritime moment has arrived. Hindustan Times.
- Singh (2021). Blue Economy in the Indo-Pacific: Navigating Between Growth and Conservation. Observer Research Foundation.
- Bhatia (2022). India’s blue economy and the Indo-Pacific’s future. Gateway House, Indian Council of Global Relations.
- The Energy and Resources Institute (n.d.). Blue Economy:India’s Pathway to Sustainable, Secure, and Resilient Economy.
- UNDP (2023). Pursuing a Blue Economy for a Sustainable and Resilient Future.
- UNCTAD (2023). Trade and Environment Review 2023: Building a sustainable and resilient ocean economy beyond 2030.
- Sinharay (2023). Demands and Dispossessions: AReport on Blue Economy. Centre for Financial Accountability.
- Bajaj & Youdon (2024). Towards A Holistic Blue Economy Framework: Adoption of High-Level Principles for Blue Economy by the G20. National Maritime Foundation.
- PRS Legislative Research (2024). Interim Union Budget 2024-25 Analysis.
- Dixit (2024). Budget 2024: What is Blue Economy 2.0? Business Today.
- Majumder (2024). Blue Economy 2.0 and Sagarmala program. Centre for Financial Accountability.
About the Contributor: Srishtistuti Roy is a researcher at IMPRI, New Delhi. She is an alumna of the Department of International Relations at Jadavpur University. She has recently completed her postgrad in Gender Studies from the University of North Bengal and hopes to pursue a doctorate soon. Her research interests include South Asian political economy, gender & identity politics, development discourses and sustainability, contemporary social movements, and cultural studies.
Acknowledgements The author expresses her gratitude to Dr. Arjun Kumar and other collaborators at IMPRI for peer-reviewing this article.
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