Mumbai (Maharashtra) [India] September 18 (ANI): India shipbuilding sector is at a historic inflection point, with bold government policies, rising global demand, and international partnerships positioning the country to emerge as a leading maritime power, according to S&P Global.
Currently, India accounts for less than 1 per cent of the global shipbuilding market. However, experts believe that with sustained efforts, the country could break into the world top five shipbuilding nations by 2047.
Rahul Kapoor, Global Head of Shipping Analytics & Research, S&P Global Commodity Insights noted India has a very low market share today so the opportunity is big, The government initiative, policy initiatives are on the right track. And India can, over the next few years, along with the maritime clusters, as well as investment, start taking a slightly higher market share in global shipbuilding.
The government has laid down an ambitious roadmap through Maritime India Vision 2030 and Amrit Kaal Vision 2047, targeting a place among the top 10 by 2030 and top five by 2047.
In Union Budget 2025, Rs 25,000 crore Maritime Development Fund was announced to provide low-cost and long-term financing for shipbuilding and infrastructure projects to address the high capital costs that have long constrained the sector.
Kapoor said many Memorandum of Undertakings (MoUs) are signed with Japan and Korea to boost the sector. We also seen a lot of MOUs which are being signed with Korea and Japan particularly because those are the leaders along with China.
In a further boost, Indian shipyards have been given the first right of refusal in public sector contracts, strengthening their competitive edge in domestic tenders.
Work is also underway to develop eight integrated shipbuilding clusters, including five new facilities and three expansions. These will bring together shipyards, equipment makers, training centres, and support infrastructure in one ecosystem.
What it effectively does, it supports your steel industry, it supports your machinery, it supports your manufacturing as a percentage of GDP, which you want to increase, as well as it creates huge employment. added Kapoor
Lower labour costs gives strength to Indian shipyards to offer competitive pricing, particularly in niche or specialised vessels such as offshore support, coastal, and cargo ships. Besides, India strategic location on major east-west and north-south trade routes further enhances its potential.
Another emerging strength is India focus on green and high-tech vessels. Growing investments are being directed toward electric, hybrid, and LNG-powered ships, in line with rising global demand for eco-friendly fleets. I addition India Navy modernisation drive is contributing to the development of advanced shipbuilding technologies and a skilled workforce.
Despite the momentum, the sector faces hurdles. High capital costs and expensive financing continue to be a barrier. Dependence on imported components and advanced materials leaves the industry vulnerable to supply chain disruptions.
While competition from China, South Korea, and Japan remains intense, India mix of cost competitiveness, location, supportive policies, and niche specialisation gives it a credible chance to emerge as a global shipbuilding hub. (ANI)
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