Interim budget has set the stage for a transformation in India’s Blue Economy 2.0. The scheme targeting restoration, coastal aquaculture, and mariculture signifies a significant step towards leveraging the vast potential of India’s coastline. Although specifics regarding budget allocation and operations remain undisclosed, the promise of enhancing livelihoods for millions of individuals along the 7,500 km coastline is evident. Nonetheless, concerns persist about maladaptation, inadvertently worsening the vulnerabilities of coastal communities to climate change, as highlighted by the IPCC’s Sixth Assessment Report. Reflecting on past adaptation measures reveals mixed outcomes, emphasising the need for strategic recalibration. The shift towards effective measures like indigenous seaweed cultivation and innovative coastal stabilisation methods offers hope. The positive reception to the budget’s focus on aquaculture echoes experts’ calls for sustainable practices that balance environmental stewardship with economic prosperity. As India navigates the path to mitigate climate change impacts and nurture marine ecosystems, fostering a resilient and inclusive blue economy beckons stakeholders to join hands in shaping a sustainable future.
Blue Economy
The World Bank defines the blue economy as “the range of economic sectors and related policies that together determine whether the use of oceanic resources is sustainable”. Blue economy seeks to promote economic growth, social inclusion, and the preservation or improvement of livelihoods while at the same time ensuring environmental sustainability of the oceans and coastal areas. Blue economy represents the policies, economic growth, livelihoods, and transportation that are done through waters and sustainable use of marine resources. Blue economy is achieving growth as well as preserving the ocean ecosystems. It is also included in the SDG 14 (Sustainable Development Goals).
India is one of the countries largely dependent on water for shipping, tourism, fisheries, and offshore explorations. Blue economy is an important aspect of the overall economy. India has a coastline of about 7,500 km and its EEZ (Exclusive Economic Zone) extends to about 22 lakh square km.
Components of Blue Economy
Blue economy encompasses a wide range of activities, both traditional and emerging, that utilise and benefit from marine resources and ecosystems. These components can be categorised into several key sectors:
- Harvesting and trade of marine living resources This includes traditional fisheries as well as aquaculture, which involve the harvesting and cultivation of fish, shellfish, and other marine organisms for food, pharmaceuticals, cosmetics, and other products. It also encompasses the trade of seafood products and non-edible marine products.
- Extraction and use of marine non-living resources (non-renewable) This involves the extraction of minerals and energy sources from the seabed, such as oil, gas, and minerals. It also includes activities like desalination for freshwater generation.
- Use of renewable non-exhaustible natural forces This sector focuses on harnessing renewable energy sources from the ocean, such as offshore wind, wave, and tidal energy, to generate electricity and power.
- Commerce and trade in and around the oceans This includes maritime transport, shipping, shipbuilding, and port operations, which facilitate global trade and transportation of goods. It also encompasses coastal development, tourism, and recreation activities.
- Indirect contribution to economic activities and environments This category includes services provided by ocean ecosystems that do not have direct markets but contribute significantly to economic and environmental activities. Examples include carbon sequestration (blue carbon), coastal protection, waste disposal, wastewater management, and the existence of biodiversity.
For an activity to qualify as part of the blue economy, it must meet certain criteria, including providing social and economic benefits for current and future generations, protecting marine ecosystems, and promoting clean technologies and renewable energy sources to reduce waste and promote recycling.
Blue Economy 2.0
Blue economy 2.0 refers to an enhanced and evolved approach to the concept of the blue economy, which emphasises sustainability and environmental resilience in economic activities related to oceans, seas, and coastal regions. In essence, blue economy 2.0 builds upon the traditional understanding of the blue economy by incorporating principles of conservation, restoration, and adaptive management. Blue economy 2.0 seeks to address this limitation by promoting the sustainable use of ocean resources while preserving the health of ocean ecosystems.
The government’s emphasis on promoting climate-resilient activities and launching schemes for restoration, adaptation measures, coastal aquaculture, and mariculture reflects a commitment to advancing the principles of blue economy 2.0.
Key Elements of Blue Economy 2.0
- Sustainable resource management Prioritising the sustainable management and utilisation of ocean resources to ensure long-term economic viability without compromising the health of marine ecosystems.
- Environmental resilience Implementing measures to enhance the resilience of coastal and marine ecosystems to climate change and other environmental stressors, such as pollution and habitat degradation.
- Integrated and multi-sectoral approach Adopting an integrated approach that considers the interconnectedness of various sectors, such as fisheries, tourism, energy, and infrastructure, to maximise economic benefits while minimizing negative environmental impacts.
- Inclusive development Ensuring that economic activities associated with the blue economy contribute to inclusive growth, livelihood enhancement, and job creation, particularly for coastal communities and marginalisesd groups.
- Policy framework and governance Developing comprehensive policy frameworks and governance mechanisms to guide sustainable blue economy development, including national accounting frameworks, ocean governance structures, and regulations for responsible ocean use.
Blue Economy in Budget
The interim budget 2024–25 has put forward blue economy 2.0 as one of its priorities. It was built on the policy framework released in July 2022. To promote aquaculture and mariculture and preserve the health of oceans, an integrated and multi-sectoral approach will be used through the advancement of the ‘blue economy’. Measures aimed at promoting climate-resilient activities are referred to as ‘blue economy 2.0’.
As per the finance minister, “For promoting climate-resilient activities for blue economy 2.0, a scheme for restoration and adaptation measures, and coastal aquaculture and mariculture with integrated and multi-sectoral approach will be launched.” This indicates a commitment to launching initiatives that not only focus on economic development related to the ocean but also prioritize sustainability and climate resilience.
The mention of ‘blue economy 2.0’ in the budget speech indicates a strategic shift towards a more sustainable and inclusive approach to harnessing the economic potential of the ocean. This aligns with the broader global trend towards promoting sustainable development in coastal and marine areas. Proposals of the Budget 2024–25 regarding blue economy are:
- The main focus will be on restoration and adaption measures. Climate resilient activities, restoration, adaptation measures, integrated aquaculture, and mariculture will be included. Sustainable aquaculture and mariculture will contribute to improved quality of the food sector, fishing, tourism, and renewable energy.
- Pradhan Mantri Matsya Sampada Yojana (PMSSY) scheme will be intensified. The goal is to double exports to 1 lakh crore and generate employment for about 55 lakh people.
- The budget plans to set up five integrated aqua parks to improve aquaculture production and productivity. The integrated approach recognizes the need for cooperation among government departments, industries, and civil society.
With the proposals of the government to improve the blue economy, the stakeholders, government, and other parties must contribute their part as well. It is important that these schemes continue in the long run and contribute to net-zero emissions targets, sustainable development, and improved livelihoods. Some of the other initiatives related to the blue economy are the Sagarmala project, the Deep-ocean mission, National fisheries policy, NavIC, Integrated coastal zone management, O-Smart, etc.
Challenges for Blue Economy
The blue economy faces numerous challenges that impede its development and threaten the health of marine ecosystems. Historically, aquatic environments have been treated as boundless sources of resources and dumping grounds for waste. However, this perspective ignores the finite nature of these resources and the detrimental effects of overexploitation.
Some Key Challenges Faced by Blue Economy
- Rising demand and ineffective governance Increasing demand for marine resources coupled with ineffective governance structures have led to unsustainable exploitation. Inadequate regulations and enforcement contribute to overfishing and habitat destruction.
- Technological advances While technological advancements have improved efficiency in resource extraction, they have also facilitated overexploitation. Modern fishing techniques and equipment can deplete fish stocks faster than they can replenish.
- Climate change The effects of climate change, such as rising sea levels and ocean acidification, pose significant threats to marine ecosystems. These changes disrupt habitats, alter ocean currents, and impact marine life, affecting both biodiversity and the livelihoods of coastal communities.
- Unregulated development Coastal development, deforestation, and mining contribute to habitat destruction and coastal erosion. Unplanned development leads to the loss of critical habitats and exacerbates conflicts between different sectors competing for limited coastal space.
- Marine pollution Pollution from untreated sewage, agricultural runoff, and plastic waste threatens marine ecosystems. The accumulation of pollutants harms marine life and ecosystems, affecting both commercial fisheries and coastal tourism.
- Illegal, unreported, and unregulated (IUU) fishing IUU fishing undermines conservation efforts and deprives legitimate stakeholders of revenue. It contributes to overfishing and threatens the sustainability of fish stocks, particularly in regions where governance and enforcement are weak.
- Unfair trade practices Small Island developing states, which rely heavily on their Exclusive Economic Zones (EEZs) for economic development, often face challenges in negotiating fair fishing agreements. Limited administrative capacity and unequal bargaining power result in inadequate revenue distribution and knowledge transfer from foreign fishing companies.
Conclusion
Overall, blue economy not only concerns conservation and promotion of sustainable usage of waters but also creates jobs, takes action against illegal/ overfishing, tackles marine pollution, harnesses renewable energy, and aims to end hunger. This is possible through the coordinated action of government departments, industries, and others. With collaboration and collective efforts, sustainable development goals in coastal areas can be achieved.
India aims to achieve net-zero emissions by 2070 and blue economy 2.0 is also in accordance with the goal. With this policy, the government aims to reduce pollution, improve the fish population and reduce the burden on wild fish stock, sustainable use of oceans, and extract energy from renewable resources which will contribute to reduced emissions.
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