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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Fast Today, Prosper Tomorrow

AI Generated Image Navratri is a time when devotion, self-control, and celebration come together. For nine days, people across the country observe fasting, prayers, and rituals with discipline and faith. But beyond the spiritual significance, Navratri also carries valuable lessons for our financial lives - especially in how fasting and sacrifice mirror the principles of investing. Fasting as discipline When we fast, we consciously give up indulgence. It is not just about avoiding food; it...

Fast Today, Prosper Tomorrow

AI Generated Image Navratri is a time when devotion, self-control, and celebration come together. For nine days, people across the country observe fasting, prayers, and rituals with discipline and faith. But beyond the spiritual significance, Navratri also carries valuable lessons for our financial lives - especially in how fasting and sacrifice mirror the principles of investing. Fasting as discipline When we fast, we consciously give up indulgence. It is not just about avoiding food; it is also about training the mind and body to resist temptation. The same applies to investing. In a world full of instant gratification, whether it is the latest gadget, a fancy car, an expensive lifestyle or a luxury holiday, real wealth creation requires the discipline to sometimes say, “not now.” Just as fasting strengthens willpower, disciplined investing strengthens our financial health. Sacrifice for a greater good Navratri fasting involves small sacrifices today for spiritual growth tomorrow. In investing too, we often have to sacrifice some short-term pleasures to secure long-term prosperity. Choosing to invest a bonus instead of spending it entirely, or increasing SIPs using a portion of every salary increment instead of allocating the entire increase towards expenses and new liabilities, may feel like a sacrifice initially. But these small decisions, repeated over many years, can accumulate into significant future wealth and financial security. This is the very essence of delayed gratification. Patience and consistency Navratri fasting is not observed for just one day. The discipline continues throughout the nine days. Similarly, investing is not about one lucky trade or one successful investment. Wealth creation requires staying the course month after month and year after year through regular investing, sensible asset allocation and the power of compounding. There will inevitably be periods when markets test our patience. But just as discipline during Navratri is maintained throughout the festival, financial discipline must continue through both good and difficult market conditions. Balance and moderation Fasting during Navratri is not about starving. It is about moderation, restraint and mindful eating. Investing too should not be about extremes, neither reckless risk-taking nor excessive conservatism. A well-planned portfolio spread appropriately across assets such as equity, debt and gold can provide both growth and stability. Just as moderation keeps the body healthy, balance helps keep our finances resilient. The bigger picture Ultimately, Navratri fasting is also about purification of the body, mind and soul. Investing, in its own way, requires purification of financial habits: moving away from impulsive spending, unnecessary liabilities and short-term thinking towards purposeful saving and wealth creation. This Navratri, as you observe your fast with devotion and discipline, also resolve to bring the same qualities into your financial life. After all, both fasting and investing ask us to give up a little today in pursuit of something greater tomorrow. (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Indian Shipbuilding A Must Win Marathon

Writer: Capt. Naveen S Singhal
Capt. Naveen S Singhal
Dec 5, 2024
4 min read
Shipbuilding

With a coastline of 7500 KM, it is hard to imagine, that for the first 20 years (1947-1967) India had no ‘shipping ministry’. In 1967 a Shipping ministry “coupled” with ROAD transport was established. Since then, this ministry has been on a name changing ride, not once, not twice but six times. In 2009 the “ROAD Transport and Highways” was de-coupled and ‘Shipping’ ministry was formed. Turning point came in 2015 with a clear maritime vision for 2030 and 2047. Ministry was re-christened, aptly to Ministry of “Ports, Shipping and Waterways” in 2020.


Why is Shipbuilding important for a country?

a. A Shipyard becomes an opportunity hub and like a queen bee requires the support of an industrial colony to manufacture machinery and equipment.

b. National Shipyards support fleet renewal needs of the Navy.

c. Contributes to national GDP, increases inflow of FOREX.


Korea shipbuilding is 8% of GDP. Japan’s automobile industry is 2.9% of GDP. India’s shipbuilding a meagre 0.000578% of GDP. In context, India’s pharmaceutical industry, ranked third largest in the world is 1.72% of India’s GDP.


International Shipbuilding Market

The market is estimated to reach around USD 200 billion by 2029, growing at a CAGR of 4.84%. While India is at bottom with 0.07% of world share, behind Philippines 1.5% and Vietnam 1%, however on the positive side, India has done well in taking care of its defence needs, with 37 of 39 Naval ships being built in India yards. Rear Admiral S Shrikhande researching on maritime as a Fellow at Wollongong University, Australia, says “Shipbuilding in India needs both, serious incentivisation and dogged determination and not harping on being a big ship breaking country. That Garden Reach shipyard has a $54 million order for merchant ships from a German owner, is a good sign.”


Were Shipyards of 20th century in Flight mode?

Prominent shipyards in India were built in the colonial period. Mazagon Dock 1774, Garden reach 1884, Hindustan shipyard 1941 to cater to British navy and merchant fleet needs. Cochin shipyard 1972, Adani Katupalli 2013, Reliance Naval and Engineering, Rajula Gujarat 1997 and others have limited capacity, hence a lot more work to do. Capt. Subhangshu Dutt (Singapore) a mariner and now a shipowner, says “GOI should hold hands in any collaboration till the marriage with the foreign entity is reasonably stable. He also suggests that “new shipbuilding sites should be given to existing successful shipyards since they have decades of experience and talent. Consortium of 3 or more parties may also be good idea”.


Shipbuilding GOLD

As per SPLASH report the demand for LCO2 carriers could reach 2,500 ships by 2050. As per other estimates, 40% of global fleet of ships could have wind propulsion by 2050. A surge in such vessels is due to an unparallel waves of decarbonization in the shipping industry. Demand for ships with ‘carbon neutral’ badges, such as Dual fuel, Wind assisted, Nuclear fuel ships, Hydrogen powered ships, Liquified CO2 (LCO2) carrier, is outstripping supply. A must in the ‘bucket list’ of every Shipyard. Pinning down a standard ROI in shipbuilding is not easy, but experts suggest it could range from 4% to 15% for the high demand ‘carbon neutral’ ships. While an LNG new build vessel could cost US$ 250 million upwards.


International collaboration

On China’s shipbuilding success story, Manoj Pandalanghat (Singapore) a mariner and ship owner believes that “China has around 50 active Shipyards. Each have a few large dry docks. In each dock two or more large vessels are built simultaneously. Thus, a single yard is able to roll out 2/3 vessels/month, 36 vessels/year and 50 shipyards roll out 1800 vessels/year”.


China could be a jaldi-5, but India needs a sturdy Mount Fiji. Besides technology, Japanese bring the most important hand baggage of soft-skills and culture, essential for success from keel laying to delivery. Maruti’s is a standing example.


Food for thought for New Delhi

a. Expertise: Hire Naval Architects and shipbuilding experts with current international experience.

b. Government assistance: Land, Financial support, subsidies and timebound clearances.

c. Monitoring: PMO should monitor the first 5 to 10 years till Shipbuilding takes-off on this long-haul flight to destination 2047.


India’s Shipbuilding is expected to grow to $237 billion by year 2047. On a back of the envelope calculations this works out to about 4% of India’s 2047 projected GDP of $ 5 trillion. While cars are driven on roads, however the Ministry of roads and transport has little to do with “Automobile manufacturing”. On a similar note, ‘Shipbuilding’ as an industry has little to do with Ports, Shipping and Waterways, thus it may be worthwhile to consider a separate ‘Ship-building’ wing in the Ministry of Ports, Shipping and Waterways headed by a dynamic cabinet rank minister. Since 2047 targets are stiff and an uphill task, so in all probabilities, the officials in Ministry of Ports, Shipping and Waterways are likely to push beneath the carpet, delays and failures of Shipbuilding with sweet success stories of “Ports, Shipping and Waterways” and if this does happen then India will not only miss the Shipbuilding bus of 21st century but a lot more from a national security and strategic perspective.


(The author is a Shipping and Marine consultant. Member Singapore Shipping Association and empaneled with IMO as a specialist consultant. Views personal.)

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