In ancient times, India was known for its prosperity, education and science. The Portuguese came to India in 1498 to trade spices. In the 17th century, the Dutch, the French, and the English followed and established their own trading centers in the country. The British East India Company was very aggressive in expanding its trade and soon began to trade in many basic commodities, such as cotton, silk, salt, opium, and tea. The Company had its own private army to protect its trading posts. This resulted in conflicts between the local rulers of India and the British East India Company. The British government sent a larger force to India and provided funds to expand the British Indian Army. Soon, the British were not only merchants, they became the rulers of India and were generating more income by taxing the locals. By 1819, the British controlled almost all of India.
As trade grew, the British had to build the infrastructure of India to move their armies and goods efficiently. After a long fight for freedom, India finally regained its independence in 1947, when the British left India. India used its freedom to choose democracy, but soon suffered heavy corruption and struggles for national power. One of the biggest challenges India faced was the many languages and different religious castes that divide society. The politicians had to use all their energy and power just to hold the country together. Many states wanted their own freedom based on their religion, language, and geographic location. During this time, the development of industry and infrastructure in India was very poor. Even today, although India is one of the largest economies in the world, poverty is still a huge problem. But considering this from a different point of view, this also presents a great economic opportunity for India.
India has grown steadily since 2000. Unfortunately, for many years the government was notorious for corruption, scams, and misuse of public funds. In 2014, the people of India removed the corrupt government from office. The new government, elected in 2014, is more focused on infrastructure development, tax reforms to attract foreign investment and create industries, and shortening lengthy red tape to make it easier for people to start businesses. The government also intends to make India the largest manufacturing center in the world. There are also plans to transform 100 existing cities into high-tech smart cities by rebuilding their infrastructure, using renewable energy to generate power, and using the Internet to provide services. India’s luxury market has also grown significantly since 2000. There are all kinds of expensive luxury cars on the roads, the auto industry is growing, and big brand shopping malls are popping up in every major city. The cost of living is no longer cheap. Real estate prices in Mumbai, for example, which is known as the financial center of India, are among the most expensive in the world.
According to Forbes in 2015, India ranks fifth in the world for having the highest number of billionaires, 90. The number of millionaires in India was around 182,000 in 2014 and is expected to grow up to 50% in 2019. The main India’s economic sector in 2014 It was the service sector, which mainly concerned the IT industry and outsourced call centers for banks and airlines around the world. India’s manufacturing sector is also one of its main contributors to the economy, for example the manufacturing of pharmaceuticals, textiles, automobiles, and machinery. Other important sectors are mining, raw materials such as iron and copper, and agriculture. India has made a conscious effort to shift the focus of the economy from agriculture to industrialization. India’s service sector is relatively new and employs mainly the young and educated. This sector has greatly increased the growth rate of the educated middle class in India. The country is experiencing steady growth in high-tech industry and the wealth of the middle class is increasing due to increased technological innovation. What this means for the yachting industry is that India has a potentially large market for inexpensive speedboats and yachts for young adventurers from India. The country is also surrounded by beautiful waters along its more than 7,500 km of coastline, with a large ocean for the locals to enjoy.
What has held back India is not only the slow development of infrastructure, but also corruption within the government, which has led to the development of the wrong type of infrastructure, which does not benefit the public. India’s bureaucracy also makes it difficult for entrepreneurs to start businesses. Other problems, such as crime and constant religious conflicts, have also caused a brain drain. Many of India’s educated workers, such as doctors, scientists, and engineers, have left the country to settle in the US, Europe, and other developed countries. Many have achieved great successes abroad, which they would not have been able to achieve in the Indian system.
As for the shipping industry, there is enough visible wealth in India for it to flourish, but the previous government never paid any attention to it. It was as if they didn’t care or understand this industry at all. The tax on private yachts in India is currently 48.7% and to make matters worse, there is not a single decent sports club in the entire country. In recent years, some companies have struggled to succeed in the pleasure yacht industry, but have not received any support from the authorities or assistance with the installation of the infrastructure. Some companies have built a small private marina club in the southern part of India, but it does not come close to international standard. The recreational boating industry also suffers because there are not enough private yachts in the country to provide enough profit for businesses to survive.
That said, the country’s underdeveloped shipping infrastructure also offers potential for further growth. If the government begins to take the industry seriously, encourages the private sector to develop marine clubs, and provides space and assistance for small businesses to set up their facilities, the boating industry in India can achieve rapid growth. The Indian authorities must also understand that the country needs a new industry, such as shipping, to create jobs, generate income and diversify the economy.
Some of India’s automakers have dabbled in boat building, but on a very small scale. The good news is that the government that was elected in 2014 is very keen on creating a better economy and has proven to be more active than the previous government. They are also interested in adjusting their tax system to create a business-friendly environment and, like Indonesia, are trying to establish transparent and automated online systems for licensing people to start businesses. This could be a very positive development for the future of the country, and if the yachting industry constantly strives to work with the government, India could become a major consumer and manufacturer of luxury yachts for the next 10 years.
Hope you found this article useful.
Happy boating
For more information on the boating industry in Asia, visit http://www.asia-boating.com