Q. With reference to the “Shipbuilding Industry in India” consider the following statements:
1.The industry is one of the highest employment multipliers.
2.An indigenous shipbuilding industry can help in reducing the Current Account Deficit (CAD).
3.The industry has the potential to create a collaborative production ecosystem..
Which of the statements given above are correct?
Statement 1, 2 and 3 are correct. Shipbuilding has one of the highest employment multipliers of 6.48 and is capable of generating mass employment in remote, coastal and rural areas. An indigenous shipping and shipbuilding industry can reduce freight bills and forex outgo, thus reducing the current account deficit. Shipbuilding has links to other ancillary industries including steel, engineering equipment, port infrastructure, etc. which have the potential to create a collaborative production ecosystem.