Question

Analyse the importance of water transport in the ‘international trade’ of India.

Answer 1

Because of the country’s extensive coastline and strategic location, water transport is the most important mode of foreign trade in India. Its importance is analysed using the following main points:

1. Cheapest Mode for Bulk Cargo: Water transport is the most economical mode to transport large and bulky products across long distances. It requires no route building and has very minimal friction, making it substantially cheaper than air or ground transportation.
2. Dominant Share in Trade: Historically and currently, ocean routes handle the vast majority of India’s foreign trade. Approximately 95% of India’s commerce volume and 70% of its value pass through its major and minor ports.
3. Energy Efficiency: It is the most fuel-efficient and environmentally conscious means of transportation. Large ships can transport large amounts of cargo with relatively low fuel use per tonne, lowering the carbon footprint of global trade.
4. Gateway to Global Markets: India has 12 main ports and approximately 200 minor ports, which serve as global gateways. Ports such as Mumbai, Kandla, and Chennai connect India to Europe via the Suez Canal, as well as to America, Africa, and Eastern Asia.
5. No Maintenance of Routes: Unlike roads or railways, the “tracks” (oceans) are natural and do not require maintenance; investment is required solely for the development of ports and ships.