India is not only Asia’s most rapidly expanding economy, it also has the world’s biggest population. To reach its ambitious economic goals and boost trade, the country has planned several initiatives, including gigantic infrastructure projects to support its transport and logistics industry. But beside building new roads, railway tracks and airports, India is also rethinking its approach to cargo shipping. Currently dependent on international cargo shipping companies, the subcontinent is planning to establish its own “national carrier”…

India is the fastest-growing G20 country and the most rapidly expanding economy in Asia, coupled with increasing urbanization and an astonishing projected population of 1.7 billion people by 2060. With 6.5% GDP growth and an annual GDP of 3.4 trillion (!) euro, the recently signed trade deal with the European Union will further boost both economic blocks. This trade deal comes at just the right time, benefiting both partners: The EU urgently needed geopolitical successes after ongoing tensions with the USA. No wonder Europe and India are pushing for new trade agreements to diversify supply chains and raw material sources and to open up new markets.

Growth needs infrastructure

The Indian government recognizes the challenges resulting from its economic growth and is launching massive development programs for its transport and logistics sector. The task of updating the aging infrastructure is clearly gigantic, but the potential is high. It’s easy to see why market experts predict significant growth for the Indian logistics market. According to a report by Armstrong & Associates, total logistics spending is expected to reach almost 560 billion euro by 2026.

To reach this goal, the Indian national budget for 2025/2026 allocates over 110 billion euro for this purpose alone. Maritime logistics is developing particularly fast, which is why New Delhi is planning investments of nearly 34.4 billion euro for the modernization of ports and transshipment hubs with its “Maritime India Vision 2030”. A more than welcome side effect: This is expected to create two million jobs.

Why turn into a “maritime player”?

In a move that underscores the country’s expanding global ambitions, India announced a multifaceted maritime initiative to bolster trade and widen the country’s reach and security in seaborne commerce. The initiative aims to reduce the dependence on foreign-flagged ships and increase control over imports and exports. Technically, India does not need its own shipping company. There are enough carriers to supply the emerging economic power with the necessary capacity for its further rise. However, trade conflicts, erratic customs policies, and the growing entanglement of politics and commerce are putting pressure on the concept of free and open markets.

100 ships as a first step

The shipping industry is increasingly being viewed through the lens of national security. Thus, it comes as no surprise that India will launch a carrier with a fleet of 100 ships, calling it “Bharat Container Line” (BCL). This announcement has more political and strategic significance than economic necessity. However, the Indian government has realized that, as the world’s fifth-largest economy and most populous country, it is risky to remain a maritime dwarf.

Initially, the shipping company will focus on intra-Asian traffic. In the future, however, BCL will also operate on the east-west routes, promoting the important India-Middle East-Europe Economic Corridor (IMEC).

To this date, there is only one Indian shipping company: The “Shipping Corporation of India” has only four active container ships with a total slot capacity of around 20,000 TEU. This is even less than the world’s largest single container ship can offer, with a capacity of over 24,000 TEU.
In comparison, the world’s largest container carrier, MSC, operates over 900 vessels, reaching a total capacity of 7.2 million TEU.

Additionally, India has also announced an ambitious “Maritime Development Fund” aimed at expanding domestic shipbuilding capabilities and port infrastructure overseas. Some might even compare this initiative to the extensive “Belt-and-Road” development in other countries by China, a rival economic power.