India – The Balance Between Subsidies and Entrepreneurs

by Bridget Hogan

In the past, India’s system of ship financing saw huge subsidies given to some, with a priority on protectionist measures aimed at preserving the national flag and employment for seafarers. If owners fell outside the subsidy sphere, then their only recourse was the international market. But with protectionist policies in force, it was hard for many to convince foreign banks that there was an attractive commercial operation to fund.

Other owners beat a path to the development aid funds of Western countries, or sought help from controlled economies of the former USSR or China. Now the world is maturing and, in India, there are changes to match. India’s ship finance structure somewhat reflects the way that the world in general considers the country to be – hugely bureaucratic and yet entrepreneurial as well.

Shipping Corporation of India
This dichotomy is illustrated in the fortunes of the country’s largest shipping line – the Shipping Corporation of India. It has 120 vessels, totaling about 5.2 million tonnes deadweight. Many are older, smaller vessels that are uneconomical to operate in modern terms.

This is only an excerpt of India – The Balance Between Subsidies and Entrepreneurs

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