Transferring equity to coastal communities

UPSC Syllabus: Gs Paper 3- Environment And Gs Paper 2-mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.

Introduction

India’s conservation framework has remained land-centric for decades, while the 7,516-km coastline and Exclusive Economic Zone (EEZ) remain under-utilised despite legal provisions. The marine sector operates on an extraction-only model without benefit-sharing, creating inequity for coastal communities. This gap leads to loss of economic sovereignty, especially as the global bio-economy shifts towards marine genetic resources and digital value systems.

Structural Features of India’s Marine Sector

1. Land-centric governance: India’s biodiversity framework mainly focuses on forests, crops, and medicinal plants.
2. Strong land-based systems: Well-defined protocols exist for forest genetics, flora, and inland cultivars.
3. Weak marine focus: Marine biodiversity lacks similar operational systems despite the existence of law.
4. Under-utilised coastline and EEZ: The 7,516-km coastline and vast Exclusive Economic Zone remain un-operationalised in practice.
5. Policy–implementation gap: Legal provisions exist, but effective execution in marine areas is missing, creating a regulatory gap.

Core Issue with India’s Marine Sector

1. Extraction-only model: The marine sector operates on large-scale wild catch extraction without benefit-sharing.
2. Export-driven harvesting: Thousands of tonnes of marine resources are harvested annually to sustain the export industry.
3. Absence of ABS framework: The Access and Benefit Sharing (ABS) system is missing in the marine aqua sector.
4. No returns to fishermen: Coastal fishermen with knowledge of species like Yellowfin Tuna and Tiger Prawn receive no share in genetic or economic value.
5. Unequal treatment: Forest communities receive compensation even for small resources, but coastal communities are excluded from benefits.
6. Fundamental inequity: This creates a clear imbalance between land and marine stakeholders, despite both being primary conservators.

Legal and Policy Shift (2023–2025 Reforms)

(a) Recognition of Oceans as Strategic Assets:

• Shift in policy approach: The Biological Diversity (Amendment) Act, 2023 recognises oceans as strategic national resources, not just open-access commodities.
• End of regulatory neglect: It addresses the long-standing gap where marine biodiversity remained outside active governance systems.

(b) Extension of Access and Benefit Sharing (ABS) Framework to Marine Sector:

• Inclusion of marine resources: The Revised ABS Regulations, 2025 extend benefit-sharing to marine biological resources.
• Correction of inequity: It aims to ensure coastal communities receive a fair share of profits, similar to forest-based systems.

(c) Alignment with Global Frameworks:

• Global compliance: India’s Access and Benefit Sharing (ABS) framework aligns with BBNJ (High Seas) Treaty and COP16 Cali Fund standards on marine genetic resources.
• Trade relevance: It ensures Indian marine products meet international sustainability and ethical requirements.

(d) Support for Emerging Genetic Economy:

• DSI-based governance: The reforms support regulation of Digital Sequence Information (DSI) derived from marine resources.
• Protection of genetic value: It ensures that lab-based use of marine genetic data does not bypass benefit-sharing mechanisms.

Emerging Importance of Marine Genetic Resources

1. Shift to Genetic Value Economy: The marine sector is moving from physical fish harvest to high-value genetic resources like deep-sea bacteria and micro-algae.
2. Rising Role of Genetic Data: The value now lies in genetic information derived from marine organisms, which is used in pharmaceuticals and biotechnology.
3. Risk of Value Loss without Benefit Sharing: When global firms use Digital Sequence Information (DSI) from Indian marine resources, royalties may not reach coastal communities, leading to loss of economic value.

Economic Opportunity and Trade Advantage

1. Strong Export Base: India’s seafood exports reached ₹62,408 crore, with Andhra Pradesh contributing over 60%, showing high economic potential.
2. Shift in Global Trade Standards: Markets like the EU and US now focus on ethical sourcing and sustainability standards, not just price.
3. ABS as Compliance Tool: A functional Access and Benefit Sharing (ABS) system acts as a certification mechanism, helping exporters meet global requirements.
4. Access to Premium Markets: Compliance with global standards helps India secure better market access and higher value exports.

Implementation Strategy

1. Targeting High-Value Industrial Players: ABS applies to large exporters and processors with turnover above ₹5 crore, focusing on premium wild-caught species, ensuring that economic surplus from high-value trade is captured.
2. Exemption for Small Fishermen and Aquaculture: Small and traditional fishermen are fully excluded, and aquaculture like Vannamei shrimp is not covered under ABS, as it is treated as cultivated resources, protecting livelihood security.
3. Digital Integration for Seamless Compliance: Systems like SWIFT (Single Window Interface for Facilitating Trade), MPEDA (Marine Products Export Development Authority), and ICEGATE (Indian Customs Electronic Gateway) ensure automated and non-burdensome ABS compliance, avoiding manual delays.
4. Institutional Coordination and Fund Tracking: State Biodiversity Boards and the National Biodiversity Authority (NBA) will monitor collections and ensure every rupee reaches the correct coastal community, strengthening accountability.

Way Forward

1. Nationwide Expansion of ABS Framework: A uniform rollout across all coastal states is needed to ensure consistent implementation and wider coverage of marine resources.
2. Strengthening Biodiversity Management Committees (BMCs): Local institutions must be empowered to manage funds effectively and support coastal development, ensuring direct benefit to primary conservators.
3. Ensuring Transparent and Traceable Fund Flow: A system is required to track every rupee collected and return it to source communities, building trust and accountability.
4. Deeper Integration with Trade and Global Standards: Stronger linkage with export systems will ensure compliance with international sustainability norms, improving market access and competitiveness.

Conclusion

India must shift from an extraction-driven marine model to an equity-based framework where coastal communities share economic value. The 2023 reforms and ABS mechanisms can ensure fair distribution, protect marine genetic resources, and strengthen export competitiveness. A robust system will secure economic sovereignty and transform oceans into drivers of inclusive, sustainable, and value-based growth.

Question for practice:

Discuss how extending Access and Benefit Sharing (ABS) to India’s marine sector can address inequity faced by coastal communities and strengthen economic sovereignty in the evolving bio-economy.

Source: Businessline