India is to establish its own protection and indemnity (P&l) club, the latest part of the maritime jigsaw the Narendra Modi administration is creating in driving the country’s shipping ambitions.
Provisionally called India Club, the insurance entity will initially focus on covering domestic shipping, with a view to going international at a later stage. Local insurance firms such as New India Assurance and GIC Re are being tapped to create the club.
“The details and modalities of this entity are still being worked out, but the ministry is ready to provide any seed money required for the initiative,” said T K Ramachandran, secretary in the union ministry of ports, shipping and waterways.
India is addressing its maritime infrastructure needs on a grand scale with billions of dollars being spent on new ports, while Modi, the country’s prime minister, has recently vowed to make the country one of the five largest nations for shipyards within the next decade.
From a shipping perspective, looking at numbers from Clarksons, Indian companies currently own around 1.5% of fleet tonnage, ranking 17th globally. India accounted for about 7% of total global seaborne imports in tonnes in 2022.
Globally, India is the second largest ship recycling nation, holding a 30% share and the 21st in shipbuilding. The country is ranked among the top five countries supplying trained manpower, with a 17% growth in seafarers in the last three years.