GTRI urges India to boost shipping capacity and naval protection amid maritime risks
What happened
Think tank GTRI has advised India to expand its merchant shipping capacity and naval protection to counter growing maritime chokepoints. As the Red Sea crisis crosses 1,000 days, GTRI stated that maritime insecurity must be treated as a long-term trade risk. Extended transit routes around disrupted zones have driven up freight charges, insurance premiums, and working-capital costs for Indian traders.
Why it matters
The ongoing shipping disruptions and elevated operational expenses particularly harm Indian micro, small, and medium enterprise (MSME) exporters. Small businesses sending goods to Europe and the United States face acute pressure from higher transport rates and tied-up liquidity, directly eroding profit margins in core overseas export markets.
Bigger picture
GTRI's recommendations highlight how prolonged disruptions across critical maritime chokepoints are converting temporary transit delays into structural trade vulnerabilities. As key global shipping channels remain unstable, trade-reliant economies are increasingly incentivized to build up domestic shipping capacity and provide naval escorts to safeguard vital trade flows.
Watch next
Watch for any official policy measures or announcements from Indian government authorities regarding domestic merchant fleet expansion or expanded naval escorts for commercial vessels.