Cyprus-based Interorient Navigation Co. and Danship & Partners are reported to have committed to invest almost one billion euros (Rs 10,000 crore, approximately €992,123) in the Indian shipping sector.
According to reports in the Indian and international media, this investment of 10,000 crore Rupees is, by far, the largest ever FDI in the Indian shipping sector since this sector was opened to 100% foreign investment in 2005.
The reports noted that the move follows India’s Prime Minister Narendra Modi’s recent visit to Cyprus.
“This mega investment symbolises the deep and wide diplomatic relations, bilateral, between India & Cyprus and will bring the two countries even closer to each other,” Maritime Gateway, a South Asia-based shipping and logistics news portal, said in an article on the investment.
The portal also noted that both India and Cyprus are major maritime nations and also have an Indo-Cyprus Maritime Cooperation Framework Agreement in place.
“This imminent FDI in India will contribute, among other things, to the following in the broader Indian national interest: All the ships under this investment will be registered under the Indian flag, adding significantly to India’s national shipping tonnage. This will provide large employment for Indian cadets, trainees and seafarers. The freight earned for the carriage of Indian EXIM (export-import) trade will remain in the Indian economy,” the portal’s report said.
It continued that, “This will also contribute to India’s economic security, overall. It will make for value-added contributions to India’s journey towards becoming the third-largest economy in the world over the next few years,”
Another overseas publication, Greek City Times, meanwhile, reported that “According to Daniel Gautam Chopra, head of Danship and Partners, this investment will help increase India’s capacity by procuring ships and registering them under the Indian flag. He added that their ultimate goal is to become the largest shipping operator in India.”
According to the same report, all ships involved in this investment will be registered under the Indian flag, “thereby contributing to India’s national shipping capacity and providing employment opportunities to Indian cadets, trainees, and seafarers.”
“The companies stated that the cargo secured for the transportation of Indian EXIM (export-import) trade will remain within the Indian economy,” Greek City Times said.
