The domestic shipping industry, which is under pressure from drop in volumes due to the global economic slowdown, has urged the central government to safeguard the industry against the growing threat of multinationals through measures similar to the anti-dumping duty implemented in the domestic manufacturing sector.

India is the second fastest growing economy in the World and our domestic and international trade volumes are growing at a rapid pace. Multinational shipping companies are tapping this growing domestic market. Favourable government policies boosted the domestic shipping in the post-independence period. The share of domestic shipping companies in the country's exim trade increased to over 40 per cent during the 1980s, S Hajara, CMD, The Shipping Corporation of India said. "However, since then because of detrimental policies, our share has dropped to less than 12 per cent. Local companies need to be protected," he added.

He also noted that while infrastructure status has been granted to the ship building industry and ports, the shipping industry has been kept deprived of the same and the old theory that anything movable cannot be given infrastructure status, continues.

Yudhishthir D Khatau vice-chairman of Varun Shipping, noted that protective policies were strongly practiced in other countries, and Indian shipping should also be protected
“On the shores, there are provisions like duty exemptions and anti-dumping duty to protect local industries. The argument is that anti-dumping duty was not applicable for services sector, and hence shipping will not be covered under that,” he added. He also said the shipping industry should get the level playing field in terms of taxation and funding, mainly in case of asset financing. Khatau said when the economy was booming, the banks were not ready to provide financing for purchase of vessels saying that assets were costly. Now the prices have come down and still they are not ready to lend because of the slowdown.

He noted that the industry needs huge investments in phases to replace single bulk carriers and dry bulk carriers, which are 18 years old.