India wants to establish itself as a global location for shipbuilding and maritime services.
India is preparing to stake its claim as a global hub for shipbuilding and maritime services, unveiling a sweeping strategy aimed at transforming its current market share – from less than 1%, into a meaningful presence among the world’s top shipbuilding nations.
According to a report in the business newspaper Mint, the core of the project is the development of a comprehensive maritime ecosystem that goes far beyond shipbuilding. New repair centers are planned in Kochi, Mumbai, Chennai, Kolkata and Vadinar. A free trade depot for duty-free imports and a central arbitration court for maritime disputes, the Indian International Maritime Dispute Resolution Centre, are also to be established.
The government also wants to set up a development fund of around ₹25,000 crore (around $3 billion) to trigger investments in the sector through mixed financing. In addition, a national insurance unit, known as the India Club, is under discussion. It is intended to provide protection and liability insurance (P&I cover) for coastal and inland shipping.
India aims for international cooperation
A central aspect of the program is targeted international cooperation. India is seeking joint ventures with Japanese and South Korean shipyards and their financing institutions. According to the report, Cochin Shipyard is examining a partnership with Korean companies for new projects in Kerala. The aim is to transfer successful financing models from abroad to the Indian market.
Private companies are also active. Garden Reach Shipbuilders & Engineers has signed agreements with partners from Germany and the United Arab Emirates. The industrial group L&T is working with the Norwegian classification society DNV to advance infrastructure projects.
The long-term goal is ambitious. India wants to become one of the ten most important shipbuilding nations by 2030 and one of the top five by 2047. China, South Korea and Japan still dominate the global market with a share of over 90%. However, India is focusing on an integrated approach: building, financing, insuring and repairing ships and providing all services in the country. According to industry representatives, this is the only way to really catch up.
With a current global market share of less than 1%, India is not currently a direct competitor for the established shipbuilding nations. Instead, new sales opportunities are opening up there for technology, expertise and construction contracts, which are coming under increasing pressure in their own countries due to rising costs.
Promising plan – but is it realistic?
Despite the clear strategy, there are key questions regarding its feasibility. India’s shipbuilding industry is suffering from an acute shortage of skilled workers. It remains uncertain whether training programs will take effect quickly enough. The targeted partnerships with foreign shipyards and financiers also harbor risks. Will the cooperation actually build up technological knowledge, or will India remain dependent on external partners in the long term?
Another critical question is whether the planned financing instruments will actually convince investors. Without long-term contracts and reliable structures, capital could fail to materialize. Experts also doubt that India will remain competitive in the long term with conventional shipbuilding in a market characterized by automation and sustainability. The goal of catching up with the world leaders by 2047 seems ambitious – but not impossible if implementation is consistently successful and political backing remains permanent.
