While the contribution of services sectors in general is rising for most of the countries of the world, marine services segment exhibit significant potential for growth in the future. In the context of blue economy these sectors assume higher importance. As the magnitude of investment is expected to rise in view of increasing blue economy orientation in the coastal countries, in-depth analysis of the potential and prospects of marine services is important. Major services sectors include ports & shipping, tourism, banking and financial services, transport & logistics, marine commerce, ICT, and others. In the tourism sector, leisure cruise, coastal tourism, bird watching, angling, fishing and other related services have huge potential for wage-employment in local areas and foreign exchange earnings. As blue economy policies are implemented fully, the need for project financing, term financing and brokerage services would grow. This, in turn, would require a deep marine banking and financial services sectors. Moreover, the resources needed for financing deep sea mining projects may be large which can help prosper investment banking. Likewise, other sectors of marine services will also deepen in the future.
Marine commerce is a pivotal segment of blue economy comprising of business services, marine retail services, marine financial services maritime insurance, ship leasing, support activities, wholesale trade, maritime legal service and other marine services. Maritime insurance businesses have registered growth over time. Unlike general insurance, maritime insurance involves certain unique challenges in terms of risk perceptions. The sector globally faces challenges due to fraudulent marine shippers and quality of merchandise. Ship finance is another potential sector for expansion in the Indian Ocean region. Marine conservation finance is emerging as a separate category of marine financial services. Conservation of marine resources may not be preferred by the bankers and financial markets as those do not match the revenue streams and assured profits of the typical financing instruments. This segment faces serious funding gap which needs to be met by special financing mechanisms. Expansion of scope of marine conservation and collaboration between specialist financiers should be encouraged to tap this emerging field of financing of blue economy.
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