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Financial Daily from THE HINDU group of publications Monday, November 27, 2000 |
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Lured by greener pastures
N. K. Kurup
A LARGE number of IIM graduates leave the country every year seeking lucrative jobs overseas, but Indian corporates seldom complain about the shortage of management professionals. Thousands of software engineers from India migrate to the US, but domestic
IT companies do not bother about it. Many of those passing out of our medical colleges grab the first opportunity to go abroad but Indian hospitals are not worried about the brain drain.
But it is not the same with Indian shipping companies. They are always worried about their men leaving for foreign jobs. At one time, in the early 1990s, they forced the Government to suspend the recruitment of Indian seafarers for employment in foreign
ships. They have reason to be perturbed. Unlike other sectors, shipping faces a real shortage of trained manpower, particularly marine officers. And Indian lines have been facing an exodus of trained men.
Significantly, more Indian seafarers are employed on foreign ships than those on national bottoms. It is estimated that around 12,000 Indian officers are working on foreign ships, against the 5,700 on domestic vessels. While Indian ships are not allowed
to employ foreign nationals, they are compelled to keep up the statutory manning strength.
The simple truth is that Indian officers are lured by the higher wages on foreign ships -- a fact not accepted by Indian companies. Mr P. K. Srivastava, Chairman, Shipping Corporation of India, the largest Indian shipping company, ho
wever, says it is an illusion that seafarers on Indian vessels do not get as high salaries as their counterparts on foreign flag vessels.
The average wage bill of an Indian shipowner is more than his overseas counterpart. The reason being that seafarers on Indian ships are employed on a permanent basis and enjoy several long-term benefits, while those on the foreign ships are employed on a
contract basis. The difference, according to him, is that Indians on foreign vessels get a tax-free salary. And this is the single factor driving them away from home.
According to a paper titled ``BIMCO/ISF manpower update,'' presented by David Dearsley, Deputy Secretary General, International Shipping Federation, at a Lloyd's List seminar on manning and training in Mumbai last week, the Indian sub-continent supplies
8 per cent of the global supply of officers and 13 per cent of the ratings.
India, in particular, has the 12th largest stock of officers in the world and the fifth largest stock of ratings. Though Japan and the US have more number of officers, they are employed mainly in the domestic trade.
Sea-going as a career, which at one point of time was a coveted occupation, has lost its charm in the advanced western countries. The number of seamen from OECD countries account for only 27 per cent (down by four per cent in the past five years) of the
total global marine force. These countries expect to recruit more men from developing nations. India, in this context, will continue to be a major source of trained manpower for the global maritime sector. Besides being cheaper, Indian officers are in de
mand for their knowledge of English.
From the Indian shipowners' point of view, two issues need to examined. One, can India continue to be a major supplier of seafarers to man the world fleet? And two, how do Indian shipowners ensure they have enough trained hands to steer the national flag
-bearers?
It will be difficult to prevent seafarers, or for that matter anyone, from taking up foreign jobs for which they are paid better. Manpower is India's strength. What we lack is training facilities. Indian shipowners are worried as seafarers trained at the
ir cost are deserting them.
The simple solution is to train more hands. But this is not easy as marine training is expensive. As suggested by Mr Srivastava, one strategy could be to tap ``global funding for local training''. Already, some foreign shipping lines, through their agent
s, have been sponsoring training of cadets.
More foreign funds could be tapped once the proposed Maritime University is established in the country. Several International organisations provide scholarships for study in various fields. Besides, seafaring being a well-paying career, banks and other
institutions would be prepared to provide loans to students. What is in short supply is training facilities. On their part, Indian shipowners could sponsor their own candidates.
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