The Indian Ocean As Cradle of a New Blue Economy

The Indian Ocean: From Strategic Battleground to Cradle of a New Blue Economy

The Indian Ocean, often described as India’s backyard, must no longer be viewed solely through the lens of maritime security or geostrategic competition. The pressing ecological, developmental, and economic challenges facing this ocean demand a paradigm shift towards a Blue Economic framework, driven by sustainability and inclusivity. India’s ability to lead in this domain will determine whether it capitalizes on emerging global ocean governance momentum or recedes into reactive maritime diplomacy. The current regional and international blue economy landscape offers India an unmissable opportunity, but institutional lethargy and fragmented policy risks could derail this effort.

Governance and Sustainability: Revisiting India’s Maritime Legacy

India once championed oceanic sustainability during the UNCLOS negotiations in the 1970s and 1980s, advocating for the “common heritage of humankind” principle for seabed resource management. This legacy was grounded in Nehruvian ideals that linked India’s maritime destiny to its security and prosperity. Yet, gaps remain visible between historical rhetoric and contemporary action. For instance, India’s SAGAR doctrine integrates ecosystem health within maritime security, but its practical implementation—whether in combating illegal, unreported, and unregulated (IUU) fishing or addressing coral loss—lacks coherence. The Indian Ocean Rim Association (IORA), despite India’s leadership, has struggled to institutionalize regional mechanisms capable of balancing security with sustainability.

In 2026, three key developments will reconfigure ocean governance globally: (1) the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement’s ratification; (2) the UN Ocean Conference (UNOC3); and (3) expanded financial commitments for blue projects launched at COP30. With India as IORA Chair and a BBNJ signatory, proactive leadership is necessary, yet the institutional machinery to operationalize these roles remains underdeveloped. For instance, the SAGAR program’s disaster response mechanisms do not yet address broader ecological challenges such as climate adaptation and sustainable fisheries.

Budgetary Efforts Meet Geopolitical Ambitions

Global investment in Blue Economy initiatives is scaling rapidly, with the Blue Economy and Finance Forum (2025) showcasing a pipeline worth €25 billion, along with €8.7 billion in new funding commitments. India, however, remains conspicuously absent from high-value blue finance projects. Even as COP30 launched a $20 billion “One Ocean Partnership” and the Development Bank of Latin America increased its blue economy target to $2.5 billion, India’s domestic allocations tell a different story. The Ministry of Earth Sciences allocated only ₹4,000 crore in FY 2023–24 for ocean research and development, a figure dwarfed by China’s multi-billion-dollar marine investments.

The dissonance is glaring. While the SAGAR doctrine emphasizes sustainable ocean practices, India’s 2023 Marine Protected Areas expanded by only 3%, lagging far behind global peers such as Australia, which has committed 30% of its exclusive economic zone by 2030. Similarly, India’s antiquated Coastal Regulation Zone (CRZ) framework continues to struggle with enforcement, allowing unchecked overfishing and coastal degradation.

The Counter-Argument: Strategic Maritime Pressures

Critics argue that repositioning the Indian Ocean as a developmental space undermines security priorities in an already volatile region. China’s naval expansion in Gwadar and Hambantota, coupled with U.S.-China competition over chokepoints like the Strait of Malacca, requires India to focus squarely on maritime deterrence. Does the Blue Economy framework dilute the SAGAR doctrine’s strategic intent?

This critique certainly holds water; regional stability is indispensable, given the Indo-Pacific’s geopolitical churn. However, what this argument misses is that ecological deterioration itself constitutes a non-traditional security threat. IUU fishing produces economic losses exceeding $50 billion annually, according to FAO estimates, while rising sea levels threaten port infrastructure. Reducing these risks is as urgent for safeguarding sovereignty as patrolling maritime boundaries.

Learning from Australia: Blue Economy Synergies

Australia offers a useful model for balancing ecological sustainability with maritime security under its Blue Economy Cooperative Research Centres program. Funded with AU$329 million in partnership with industry and universities, this initiative integrates aquaculture, marine biodiversity protection, and offshore energy systems. While India’s SAGAR doctrine tilts towards security, it lacks comparable investments in marine science and ecosystem resilience. What Australia effectively calls “security through sustainability," India still treats as operational silos.

Assessment: Institutional Critique and Reform

The Indian government’s fragmented approach to ocean governance needs an urgent overhaul to align policy ambition with institutional capacities. The plethora of coastal and marine-adjacent regulatory frameworks—from the CRZ notifications to sporadic disaster response mechanisms—remains cumbersome and poorly integrated across ministries. For instance, green shipping corridors identified under the Indo-Pacific Oceans Initiative (IPOI) have yet to see concrete funding mechanisms. The reluctance to operationalize an “Indian Ocean Blue Fund,” despite repeated commitments, underscores bureaucratic inertia.

The IORA Chairmanship and BBNJ ratification in 2026 present critical opportunities to institutionalize long-term reforms. Creating an Indian Ocean Sustainability and Security Council within IORA could help synchronize environmental, economic, and strategic agendas, while a dedicated blue fund can enable scaled investments in marine biodiversity, green ports, and ocean monitoring systems.

Realistic Next Steps: Bridging Rhetoric and Reform

• Operationalize the Indian Ocean Blue Fund to unlock regional investments.
• Expand Marine Protected Areas to match the 30% global target identified under the UN Ocean Conference.
• Integrate climate adaptation measures within disaster response frameworks under SAGAR.
• Leverage advanced satellite monitoring and AI-driven tools to counter IUU fishing and track ecological health.
• Deepen partnerships with SIDS and African coastal nations, aligning resource management with blue finance goals.

Practice Questions for UPSC

Prelims Practice Questions

Frequently Asked Questions