Sanjeev Sanyal, a member of the Prime Minister of India's Economic Advisory Council, recently announced at the News18 DEFCON 2026 conference that India may face a serious economic crisis, even without official sanctions from major countries, if several global shipping lines restrict access.
India's Heavy Dependence on Maritime Transport
Sanjeev Sanyal explained that India's maritime economic zone is nearly 70 percent the size of the country's land area, and about 95 percent of India's trade by volume and 75 percent by value is conducted via ships, a significant portion of which is carried by foreign vessels.
He emphasized, "Our trade is not only maritime but is almost entirely under the control of foreign shipping lines." Sanyal added that India does not need to face official sanctions to have its trade pressured.
Need for Investment in the Shipping Industry
Sanjeev Sanyal believes that there is no short-term solution to the current vulnerabilities and called for increased investment in India's maritime and shipping capabilities. He said, "A significant part of this issue relates to investment in the navy. Ultimately, you need Indian ships."
According to Sanyal, India currently has about 480 ocean-going vessels, most of which are of medium size. He stated, "We need to take serious action in shipbuilding, flagging, and ownership of ships" and emphasized the need to strengthen India's domestic shipping capacity.
Sanyal's remarks regarding India's dependence on maritime transport for both volume and value of international trade highlight the importance of access to shipping services as part of the country's economic and strategic security. He also referred to changes in India's maritime legal framework and reported heavy investments in the shipbuilding industry.
Sanjeev Sanyal added, "We have been able to change all the laws related to shipping and maritime, some of which date back to the 19th century. Now we have very modern maritime laws and are currently heavily investing in the shipbuilding industry."
He also stressed that India has all the necessary components to become a major power in the shipbuilding industry but faces tough competition from established players in Asia. According to Sanyal, China currently accounts for 55 percent of the ships built globally, while South Korea and Japan hold 20 percent of this market, respectively.
