Explainer: What Is Blue Economy?

• The blue economy is an economic philosophy that focuses on the sustainable use of marine and coastal resources for economic growth, aiming to balance economic benefits with ocean conservation.
• The global blue economy is valued at $2.5 trillion annually, contributing 5% to global GDP. In India, it contributes around 4% to GDP.

• While India’s marine resources offer economic opportunities, the initiative needs to be truly ‘sustainable’, and conserve the marine ecosystem for the non-economic services it offers.

Blue economy is an economic model that involves the sustainable use of coastal and marine resources to drive economic growth and livelihoods, while prioritising the health of oceans. It includes all commercial activities related to the oceans and coasts including fisheries, aquaculture, maritime transport and engineering, renewable energy, marine biotechnology, and coastal tourism.

Also referred to as sustainable ocean economy, this model seeks to promote a balanced approach of generating economic and developmental benefits, while safeguarding the ecosystem – unlike traditional economic models that follow a more naturally exploitative path to cater to global demand.

Coined in 1994 by Belgian economist Gunter Pauli, what sets this term apart is the stress on ‘sustainability’, at least in theory. The term ‘blue economy’ came more into focus after the United Nations Conference on Sustainable Development (UNCSD) in 2012, also known as Rio+20, held in Rio de Janeiro, Brazil. The United Nations Sustainable Development Goals (UN SDGs) were created here, and the blue economy initiative fits under UN SDG 14: Life below water that targets the conservation and sustainable use of oceans, seas, and marine resources.

What is the value of the blue economy?

The global blue economy is currently valued at an estimated $2.5 trillion annually, contributing around 5% of the world’s gross domestic product (GDP) – numbers that are expected to rise in the coming decade.

Ninety percent of global trade is transported via shipping, with the industry contributing 3% to global carbon emissions. The number of ocean-based startups – including those focussing on sustainable seafood, shipping, and renewables – grew by 91% between 2019 and 2022.

The oceans connect all continents and serve as a lifeline for nearly half the world’s population, providing food, employment, and trade opportunities. However, the sustainability of this economy is crucial, especially as climate change, pollution, and overfishing (catching fish at a rate faster than they can reproduce) threaten the health of marine ecosystems. Other factors such as widespread infrastructure development, poor law enforcement, and an ever-increasing demand for resources have been reported to exacerbate the already precarious situation.

What role does blue economy play in India’s growth?

India is one of the world’s fastest growing economies in the world, with massive momentum for on-ground development. The country is scoping its 11,098 kilometre-long coastline and a relatively unexplored Exclusive Economic Zone (EEZ) of more than two million square kilometres – which happens to be the world’s 18th largest EEZ so far – for its infrastructure development potential.

Currently, India’s blue economy, which includes commercial activities related to the ocean, contributes approximately 4% to the national GDP. Ninety-five percent of India’s trades are transported by sea, and fisheries employ around 2.8 crore people involved in fishing, aquaculture and related activities. As of 2023, India was the third largest producer of fish and contributed around 8% to global fish production. Coastal and sea-based tourism including SCUBA diving and water-based activities, are also expanding, say multiple media and government reports as well as those working in the sector, though official figures on the same are unavailable.

In 2019, the Indian government indicated that blue economy is part of the 10 core dimensions of growth in the Vision of New India by 2030, by stating that India’s coastline and ocean waters would fuel the country’s development. Later, in 2022, the Ministry of Earth Sciences (MoES) produced a dedicated draft Blue Economy Policy to lay down a strategy to improve the contribution of the sector to India’s GDP, preserve marine biodiversity, and maintain the national security of marine areas and resources. The policy prioritises several initiatives including deep-sea exploration, eco-tourism, sustainable fisheries development, and enhancement of maritime infrastructure.

The 2022 draft Blue Economy Policy, a revised edition of an older version, includes some existing initiatives and new projects under the framework.

One such initiative is the Samudrayaan Programme or the Deep Ocean Mission, which was launched in 2021, aimed at exploring deep-sea resources within India’s exclusive economic zones and continental shelf, the submerged edge of a continent extending into the ocean. The mission’s primary objective is to send a human-operated submersible to map the seafloor for polymetallic nodules, deep sea bioresources, potential for offshore alternative energy, and develop technologies for the sustainable utilisation of the same.

Coastal and marine tourism is a focus area under India’s Blue Economy policy framework. The initiative aims for sustainable ecotourism models in coastal areas and islands, seeking to bolster the economy while safeguarding and supplementing the community’s livelihoods and the environment. The National Coastal Mission Scheme focuses on mangrove and coral reef conservation, research and development in these areas, sustainable development of beaches, and conservation outreach programmes for coastal states and Union Territories.

The Sagarmala Project was established by the Ministry of Ports, Shipping and Waterways in 2015 to modernise, enhance, and revamp the existing ports and shipping infrastructure, and coastal community development to boost the efficiency of India’s maritime sector. Included under the Blue Economy Policy framework, the focus continues to be on developing the maritime sector, with new funding allocated for its development.

Several existing programmes like the Swachh Bharat Mission were replicated for coastal areas as ‘Swachh Sagar, Surakshit Sagar’ to conduct a 75-day long clean-up drive of 75 beaches along the Indian coast in 2022. Schemes like the Pradhan Mantri Matsya Sampada Yojana (PMMSY), which was introduced in 2015-2016 under the Blue Revolution Scheme continues to focus on boosting the fisheries sector by expanding sustainable aquaculture production and sustainable fishing.

Aaron Lobo, Head, Marine Programme, Wildlife Conservation Society-India, says that a key strategic avenue for a sustainable blue economy is ensuring the production of sustainable seafood from both, wild capture and aquaculture. “In fisheries, there needs to be a stronger emphasis on higher quality standards for both marine life and people throughout the seafood supply chain,” he says. “Certain fishing practices such as trawl fisheries, can have a high collateral impact on marine ecosystems and significantly affect the livelihoods of small-scale fishers.”

A 2022 marine fish stock assessment by Central Marine Fisheries Research Institute (CMFRI) states that 86.7% of the Indian fish stocks are being fished sustainably with only around 12.6% being under pressure or overfished, causing fish populations to decline to unsustainable levels. However, the ground reality seems to be more dire, and fish stocks have declined significantly – enough to fuel sustained conflict among fishers from different coastal states.“There are approximately 3,500 fishing villages along India’s coastline,” says Lobo. “The lives and livelihoods of the communities are strongly coupled with healthy ecosystems. Maintaining a thriving marine ecosystem is crucial to the country’s food [seafood] and nutrition security. Keeping these communities at the heart of this process would be an advisable way forward.”

Can India balance economic growth and marine conservation?

The success of India’s blue economy depends on implementation of government policies, industry participation, and community engagement to ensure long-term prosperity without compromising marine ecosystems.

On adopting global best practices to suit the Indian context, Lobo explains, “Integrating green infrastructure to reduce environmental impact, improving waste management systems to tackle marine pollution, and introducing capacity-building initiatives to promote sustainable fishing practices would be a pragmatic approach to ensuring a truly sustainable blue economy.”

Venkatesh Charloo, proprietor of Barracuda Diving, Goa, says that the biggest challenge is climate change and warming waters. “It is only March and the water temperature is already around 30 degrees, which we expect will get worse by May when peak summer hits. If this continues, we might see another wave of coral bleaching here.” He adds that the previous bleaching event in Goa started early, at the end of April 2024, and corals started recovering only by October-November 2024.

Charloo is also the Founder-Trustee of Coastal Impact, an NGO focusing on marine conservation. Speaking on the impacts of possible coastal and offshore development activities that might increase sediment runoff, Charloo adds, “Sedimentation due to runoff from the river and mining is quite bad here (in Goa). The sediments form a layer on the coral, suffocating them. Grande Island’s corals are quite resilient but now, we see even Turbinaria sp. – among the more resilient coral species – disappearing at one of our dive sites because of sedimentation, and subsequent algae takeover. Further sedimentation will be extremely detrimental to Goa’s reefs.”

While India has the potential to position itself as a global leader in sustainable ocean economy, non-economic ecosystem services such as climate regulation, carbon sequestration, and nutrient cycling need to be considered just as much. The blue economy vision requires urgent action to combat climate change, safeguard marine resources, and consider the coastal population that is directly impacted, as well.

(Published under Creative Commons from Mongabay India. Read the original article here)