India could face trouble if 3-4 global shipping lines restrict access, says Sanjeev Sanyal

Sanjeev Sanyal, a member of the Prime Minister’s Economic Advisory Council, warned that India could face significant economic disruption if a small number of global shipping lines were to restrict access. Addressing the News18 DEFCON 2026 event, Sanyal pointed out that India's maritime economic zone is approximately 70% of the country's landmass.

He revealed that around 95% of India’s trade by volume and 75% by value is transported by ships, with the majority of this trade handled by foreign vessels. Sanyal emphasized that India's trade is not only maritime but controlled almost entirely by foreign shipping lines, implying that the country could face pressure on its trade even without formal sanctions from major nations.

Sanyal stressed that there is no short-term solution to this vulnerability and advocated for increased investment in India's maritime and shipping capabilities. He stated that while India currently has approximately 480 Indian ocean-going vessels, most of them are of a medium size. To strengthen its domestic shipping capacity, Sanyal called for advancements in shipbuilding, ship flagging, and ship ownership.

His comments come at a time when India's dependence on maritime transport for both the volume and value of international trade is crucial for its economic and strategic security. India has updated its maritime regulatory framework and is currently investing heavily in shipbuilding, aiming to transform itself into a major shipbuilding power.

However, Sanyal noted that the country faces stiff competition from established shipbuilding nations such as China, South Korea, and Japan, with the latter accounting for around 55% of global shipbuilding, followed by South Korea and Japan at around 20% each.