By: Khushbu Ahlawat, Consulting Editor, GSDN
Introduction
The Indian Ocean is emerging as one of the most geopolitically significant and economically vital maritime spaces of the 21st century. Hosting critical Sea Lines of Communication (SLOCs), rich marine biodiversity, vast fisheries, offshore energy reserves, and rapidly growing coastal populations, the region represents both opportunity and vulnerability. The Blue Economy framework—first conceptualized by Gunter Pauli and globally recognized after the Rio+20 Earth Summit—provides a sustainable development paradigm that seeks to balance economic growth with marine ecosystem regeneration.
However, the operationalization of the Blue Economy in the Indian Ocean faces multidimensional challenges: overfishing, climate change, marine pollution, geopolitical rivalry, governance fragmentation, and institutional capacity deficits. The legal architecture anchored in United Nations Convention on the Law of the Sea (UNCLOS), complemented by frameworks such as Paris Agreement, Sustainable Development Goal 14, and the newly adopted Biodiversity Beyond National Jurisdiction Agreement (BBNJ), provides normative guidance but requires stronger regional coordination and national implementation.
India, as a central littoral power, has adopted an evolving Blue Economy strategy through initiatives such as Sagarmala Programme, Pradhan Mantri Matsya Sampada Yojana (PMMSY), and the National Maritime Policy 2021, aligned with its SAGAR (Security and Growth for All in the Region) doctrine. Yet structural bottlenecks, sustainability concerns, and enforcement limitations persist. This policy brief evaluates the international legal regime, regional institutional mechanisms, India’s policy framework, and emerging governance tools such as Marine Spatial Planning (MSP) and Blue Finance. It concludes with actionable recommendations to advance inclusive, resilient, and sustainable ocean governance in the Indian Ocean region.
The Strategic Significance of the Indian Ocean
The Indian Ocean accounts for nearly 80 percent of global maritime oil trade and approximately one-third of global bulk cargo traffic. Critical chokepoints such as the Strait of Hormuz, Bab-el-Mandeb, and the Strait of Malacca connect energy producers in the Middle East with industrial economies in Asia. Beyond trade, the region supports millions of livelihoods dependent on fisheries, aquaculture, tourism, and coastal industries.
However, this maritime centrality also exposes the region to compounded vulnerabilities. Climate-induced sea-level rise threatens Small Island Developing States (SIDS). Marine ecosystems face degradation from plastic pollution, oil spills, and habitat destruction. Illegal, Unreported, and Unregulated (IUU) fishing destabilizes coastal economies and depletes fish stocks. Moreover, intensifying naval competition and strategic port development introduce geopolitical contestation into ocean governance. In this context, the Blue Economy is not merely a developmental concept; it is a strategic governance framework linking sustainability, security, and economic transformation.
International Legal and Normative Framework
The governance of ocean spaces rests primarily on UNCLOS, widely regarded as the “constitution of the oceans.” UNCLOS establishes Exclusive Economic Zones (EEZs) extending 200 nautical miles from coastal baselines, granting states sovereign rights over living and non-living resources. It also codifies navigational freedoms, environmental protection obligations, and dispute settlement mechanisms.
However, UNCLOS predates contemporary environmental crises such as climate change and biodiversity collapse. To address these regulatory gaps, several complementary instruments have emerged. The Paris Agreement links climate mitigation efforts to ocean health by addressing greenhouse gas emissions responsible for ocean warming and acidification. SDG 14 explicitly mandates the conservation and sustainable use of marine resources, setting measurable targets for reducing pollution, ending overfishing, and expanding Marine Protected Areas (MPAs).
The 2023 BBNJ Agreement marks a landmark advancement by extending governance to Areas Beyond National Jurisdiction (ABNJ), which constitute nearly two-thirds of the global ocean. It introduces mechanisms for environmental impact assessments, marine genetic resource sharing, and high-seas protected areas. For Indian Ocean states, especially those with limited maritime enforcement capacity, BBNJ presents both an opportunity and a responsibility to enhance cooperative governance.
Regional Institutional Architecture in the Indian Ocean
While global treaties establish normative foundations, regional institutions operationalize governance. The Indian Ocean Rim Association (IORA) serves as the primary multilateral forum promoting economic cooperation, maritime security, and Blue Economy development. Through its Working Group on the Blue Economy, IORA advances guidelines on sustainable fisheries, disaster risk management, and marine scientific research. The Indian Ocean Tuna Commission (IOTC), established under FAO auspices, regulates tuna stocks across member states. Its scientific assessments inform catch limits and conservation measures, reflecting ecosystem-based management principles. Regional platforms such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) further enhance connectivity, maritime cooperation, and disaster resilience among littoral states.
Despite these frameworks, regional coordination remains fragmented. Overlapping mandates, uneven implementation, and limited enforcement capacity constrain the effectiveness of ocean governance in the Indian Ocean. Recent ministerial meetings within IORA have emphasized strengthening maritime domain awareness and blue economy partnerships, yet progress on harmonizing fisheries data-sharing remains slow. Within IOTC deliberations, member states have debated stricter yellowfin tuna catch limits amid concerns of stock depletion, exposing tensions between conservation objectives and national economic interests. BIMSTEC has expanded discussions on coastal shipping agreements and joint disaster management exercises following severe cyclonic events in the Bay of Bengal, but operational coordination mechanisms are still evolving. These developments illustrate that while institutional architecture exists, translating commitments into enforceable, region-wide governance outcomes continues to present significant challenges.
Vulnerabilities of Small Island Developing States (SIDS)
Small Island Developing States in the Indian Ocean face existential threats from climate change and economic volatility. Rising sea levels threaten territorial integrity and freshwater supplies. Coral reef degradation undermines fisheries and tourism. Limited economic diversification increases susceptibility to global market fluctuations. Although SIDS advocate actively in global climate negotiations, structural asymmetries in international decision-making limit their influence. Access to climate finance, marine technology transfer, and capacity-building remains inadequate. A just and inclusive Blue Economy must prioritize SIDS through concessional financing, disaster resilience frameworks, and equitable benefit-sharing under the BBNJ regime.
Recent developments underscore these vulnerabilities. In early 2025, the Maldives reported accelerated coastal erosion linked to seasonal storm surges intensified by warming ocean temperatures, prompting emergency relocation planning for vulnerable communities. Similarly, Mauritius continues to grapple with seawater intrusion into freshwater lenses after successive cyclonic events, disrupting both agriculture and potable water availability. The tourism-dependent economy of Seychelles suffered downturns as coral bleaching events reduced visitor appeal and fishery yields, amplifying calls for targeted climate adaptation finance. While initiatives such as India’s developmental package for Seychelles aim to support maritime security and resilience infrastructure, many small island states still report gaps in accessing larger multilateral climate funds. These examples highlight that without sustained financial mechanisms, technology transfer, and capacity support, SIDS in the Indian Ocean remain disproportionately exposed to environmental and economic shocks.
India’s Blue Economy Strategy
India’s maritime policy has evolved from a security-centric outlook to a broader development-security synthesis. The Sagarmala Programme emphasizes port modernization, coastal economic zones, and logistics efficiency to reduce trade costs and enhance competitiveness. Meanwhile, the Pradhan Mantri Matsya Sampada Yojana (PMMSY) seeks to modernize fisheries infrastructure, promote sustainable aquaculture, and improve fishers’ livelihoods through a ₹20,050 crore investment framework. The National Maritime Policy 2021 articulates four pillars: sustainable resource management, innovation and diversification, maritime security, and international cooperation. These objectives align with India’s SAGAR vision, which frames maritime governance as a shared regional responsibility.
India’s strategy reflects a pragmatic balance between economic expansion and environmental stewardship. However, implementation challenges persist, including underutilized inland waterways, high logistics costs, inadequate port connectivity, and regulatory fragmentation across ministries. Recent initiatives demonstrate incremental progress. The commissioning of new terminals at Jawaharlal Nehru Port and expanded container handling capacity at Paradip Port signal efforts to improve cargo efficiency and reduce turnaround time. Inland waterway development along National Waterway-1 on the Ganga has gained traction through increased cargo movement, yet operational bottlenecks and seasonal depth constraints remain concerns. Simultaneously, pilot projects on green hydrogen hubs near major ports and offshore wind assessments along the Gujarat and Tamil Nadu coasts indicate a growing emphasis on renewable maritime energy. These developments illustrate both momentum and the structural reforms still required for effective Blue Economy governance.
Persistent Challenges to Blue Growth
Overfishing remains a critical concern. FAO data indicate that approximately 90 percent of global fish stocks are fully exploited or overfished. In the Indian Ocean, tuna and other commercially valuable species face mounting pressure as fleets increase their catch to meet growing demand. Weak monitoring systems and Illegal, Unreported, and Unregulated (IUU) fishing exacerbate stock depletion, undermining the sustainability of crucial fisheries that support coastal livelihoods. Marine pollution, particularly plastic waste and industrial effluents, continues to degrade ecosystems and threaten food security. Chemical discharges from manufacturing hubs and land-based agricultural runoff contribute to eutrophication and habitat loss in sensitive coastal waters. Climate variability, including negative Indian Ocean Dipole events, intensifies coastal vulnerability by altering monsoon patterns and increasing the frequency of flooding, storm surges, and thermal stress on coral reefs.
Recent events illustrate the persistence of these challenges. In early 2025, environmental assessments in the western Indian Ocean revealed a significant spike in shark and tuna bycatch from longline fleets operating beyond regulated limits, prompting calls from regional NGOs for stricter quota enforcement and real-time vessel tracking. In the Bay of Bengal, community groups reported escalating plastic pollution along the coasts of Bangladesh and India, linked to increased shipping traffic and inadequate waste management infrastructure. Meanwhile, recent research published by oceanographic institutes highlighted that episodic warm water events have caused widespread coral bleaching in parts of the Andaman Sea, reducing reef cover and affecting marine biodiversity hotspots. Governance gaps also persist; despite comprehensive legal frameworks such as UNCLOS and regional fisheries agreements, enforcement remains uneven due to resource constraints. Limited technological infrastructure hampers real-time monitoring, while institutional overlaps between maritime, fisheries, and environmental ministries create policy incoherence. Addressing these structural weaknesses through strengthened compliance mechanisms, investment in monitoring technologies, and interagency coordination is essential for sustainable Blue Economy advancement.
Emerging Tools: Marine Spatial Planning and Blue Finance
Marine Spatial Planning (MSP) offers an integrated approach to balancing ecological protection with economic activity. By zoning marine spaces for fisheries, tourism, shipping, and conservation, MSP reduces conflict and enhances ecosystem resilience. MSP is increasingly endorsed by regional environmental frameworks and aligns with ecosystem-based management principles. Blue Finance provides capital for ocean sustainability through instruments such as Blue Bonds, climate resilience funds, and sustainability-linked loans. These mechanisms channel investments into renewable offshore energy, sustainable fisheries, wastewater management, and marine conservation. However, blue finance requires robust regulatory frameworks to prevent “bluewashing” and ensure accountability. Technological innovations further strengthen governance. Satellite monitoring and AI-based analytics enhance maritime domain awareness, track illegal fishing, and monitor pollution. Data-driven governance is central to the future of ocean sustainability.
Recent developments illustrate the growing institutionalisation of these tools. India has advanced its draft national marine spatial planning framework under its Blue Economy vision, particularly along the Gujarat and Andaman coasts, integrating fisheries management with offshore renewable energy planning. In the western Indian Ocean, Seychelles continues to operationalise one of the world’s pioneering sovereign blue bonds to finance marine conservation and sustainable fisheries. Similarly, Indonesia has expanded marine zoning regulations to curb overfishing and protect coral ecosystems while promoting sustainable aquaculture. On the technological front, partnerships involving Indian Space Research Organisation have strengthened satellite-based monitoring of coastal erosion and illegal fishing activities in the Indian Ocean region. These examples demonstrate that MSP, blue finance, and digital surveillance are no longer theoretical frameworks but practical governance instruments shaping the evolving architecture of ocean sustainability.
Policy Recommendations
To operationalize a resilient Blue Economy in the Indian Ocean, the following policy priorities are recommended:
- Strengthen Regional Coordination: Enhance IORA’s institutional capacity, harmonize fisheries regulations, and establish joint surveillance mechanisms.
- Accelerate BBNJ Ratification and Implementation: Indian Ocean states should expedite ratification and integrate BBNJ provisions into national legislation.
- Institutionalize Marine Spatial Planning: Develop national MSP frameworks aligned with ecosystem-based management principles.
- Expand Blue Finance Instruments: Mobilize sovereign and multilateral funding mechanisms, including Blue Bonds, with transparent monitoring standards.
- Empower SIDS: Prioritize climate adaptation funding, marine technology transfer, and inclusive decision-making platforms.
- Invest in Technology and Data Infrastructure: Expand satellite surveillance, AI-driven fisheries management, and real-time pollution tracking.
- Integrate Security and Sustainability: Align maritime security strategies with environmental protection objectives under the SAGAR framework.
Geopolitical Shifts and the Recalibration of India’s Eastern Aid Diplomacy
Recent regional developments have further intensified the strategic importance of India’s engagement with its eastern neighbourhood. Political transitions in Bangladesh and Nepal, continued instability in Myanmar, and expanding external economic and infrastructure involvement by China have reshaped the regional balance. In response, India has accelerated cross-border connectivity initiatives, including rail links, energy transmission lines, and fuel pipeline cooperation with Bangladesh, while reinforcing hydropower partnerships with Nepal and Bhutan to deepen long-term energy interdependence. At the same time, New Delhi has continued humanitarian and developmental outreach in Myanmar, carefully balancing border security concerns with localised assistance and capacity-building efforts. These dynamics are unfolding alongside heightened maritime activity in the Bay of Bengal and renewed focus on sub-regional cooperation mechanisms. In this evolving landscape, India’s aid diplomacy functions not only as a developmental partnership framework but also as a strategic instrument to preserve regional stability, strengthen economic integration, secure critical supply routes, and consolidate its role as a key regional actor.
Conclusion
The Blue Economy represents a transformative paradigm for the Indian Ocean, linking sustainability, economic growth, and geopolitical stability. Anchored in UNCLOS and reinforced by emerging treaties such as BBNJ, global governance frameworks provide essential guidance. Yet effective ocean governance ultimately depends on regional cooperation, national implementation, and inclusive participation.
India’s evolving maritime strategy positions it as a central actor in shaping the future of the Indian Ocean’s Blue Economy. By strengthening institutions, investing in sustainable infrastructure, empowering vulnerable states, and integrating technological innovation, the region can transition toward a resilient and inclusive maritime order.
The future of the Indian Ocean will not be determined solely by strategic competition but by the collective capacity of its littoral states to steward marine ecosystems responsibly while unlocking their economic potential. Sustainable ocean governance is not merely a policy objective—it is a strategic imperative for long-term regional prosperity and stability.
About the Author
Khushbu Ahlawat is a research analyst with a strong academic background in International Relations and Political Science. She has undertaken research projects at Jawaharlal Nehru University, contributing to analytical work on international and regional security issues. Alongside her research experience, she has professional exposure to Human Resources, with involvement in talent acquisition and organizational operations. She holds a Master’s degree in International Relations from Christ University, Bangalore, and a Bachelor’s degree in Political Science from the University of Delhi.
