Why is India building its own shipping safety net

The government has given the green light to the Bharat Maritime Insurance Pool and the timing couldn’t be better.

Here’s what’s happening: the Union Cabinet has approved a domestic insurance pool backed by a ₹12,980 crore sovereign guarantee.

Basically, it’s a safety net to make sure ships connected to India can always get insured, no matter how risky the global situation gets.

This pool will cover everything from ship damage to cargo, liability, and even war-related risks. It applies to vessels moving goods to and from Indian ports, even if they’re passing through tense regions.

Why now: because India relies heavily on shipping, over 70% of trade by volume and 95% by value moves by sea. But, most of that insurance has been controlled by foreign players.

And when things get messy globally, like the Strait of Hormuz, these insurers either hike premiums sharply or pull out altogether. That leaves Indian exporters and shipping companies exposed, dealing with higher costs and uncertainty.

So, having a government-backed pool means Indian ships and exporters won’t suddenly be left without insurance. It gives India more control and stability instead of relying heavily on foreign players.