Interim budget mentions blue economy 2.0: What this means

What is blue economy and why is it important? We explain.

What is blue economy?

While the term blue economy can simply refer to economic activities related to the sea and the coasts, it is generally understood to have an element of sustainability in it. Thus, while the European Commission defines it as “all economic activities related to oceans, seas and coasts. It covers a wide range of interlinked established and emerging sectors”; the World Bank says blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem.”

For a country like India, with a long coastline, diversity in terms of fish and other ocean produce, and multiple tourism opportunities, blue economy is highly significant.

What does the Interim Budget propose to do about blue economy?

As Sitharaman said, “a scheme for restoration and adaptation measures, and coastal aquaculture and mariculture with integrated and multi-sectoral approach will be launched.”

Restoration and adaptation will ensure the health of the oceans is not harmed while carrying out economic activities. While aquaculture is a broad term that refers to the farming of aquatic plants and animals, mariculture refers to rearing and harvesting marine creatures in salt water.

According to ANI, the Finance minister also announced the setting up of five integrated aquaparks, and said the Pradhan Mantri Matsya Sampada Yojana (PMMSY) would be stepped up to “enhance aquaculture productivity from the existing three to five tonnes per hectare; double exports to Rs 1 lakh crore; and generate 55 lakh employment opportunities in the near future.”

Does India have a blue economy policy?

The Budget document refers to blue economy 2.0. A draft policy framework on India’s Blue Economy was first released in July 2022. According to PIB, the policy document contained “key recommendations on National Accounting Framework for Blue Economy and Ocean Governance, Coastal Marine Spatial Planning and Tourism Priority, Marine Fisheries, Aquaculture and Fish Processing. Manufacturing, Emerging Industries, Trade, Technology, Services and Skill Development, Logistics, Infrastructure and Shipping, Coastal and Deep-Sea Mining and Offshore Energy and Security, Strategic Dimensions and International Engagement.”

When the G20 summit was hosted in New Delhi under India’s presidency, the Comptroller & Auditor General of India (CAG) chaired the Engagement Group for Supreme Audit Institutions (SAls) of the member countries in June 2023. Two priorities for the SAI20 deliberations were blue economy and responsible Artificial Intelligence.