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India Gears Up to Boost Domestic Shipbuilding
Context:
India is charting an ambitious course to strengthen its domestic shipbuilding industry by ensuring assured demand from state-owned entities and departments.
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- The government aims to attract investments into large-scale shipbuilding facilities while encouraging global leaders in the sector, particularly from Japan and South Korea, to set up operations in the country.
Strategic Push for Shipbuilding Investments
- As part of this initiative, the Ministry of Ports, Shipping, and Waterways (MoPSW) has instructed key ministries—including steel, chemicals and fertilizers, petroleum, coal, mines, commerce, and textiles—to formulate plans for their respective state-run firms to own ships.
- These ministries have also been advised to prioritise Indian-built and Indian-owned ships for all cargo transportation requirements.
India’s Status in the Shipbuilding Industry
Current Status:
- Global Ranking: India currently ranks 22nd in the global shipbuilding industry, with ambitions to enter the top 10 by 2030 and become one of the top five countries by 2047.
- Market Growth: The Indian shipbuilding industry has grown from $90 million in 2022 to $1.12 billion in 2024, with projected growth to $8 billion by 2033, representing a 60% CAGR.
- Infrastructure: India has 13 major ports and over 200 other ports, along with 30 shipyards, including both public and private sector players.
Key Initiatives:
- Infrastructure Status for Shipbuilding: The Union Budget 2025-26 has accorded infrastructure status to large ships, which is expected to boost the sector by providing easier access to financing and other benefits.
- Maritime Development Fund: A ₹25,000 crore Maritime Development Fund has been allocated to support the maritime sector, including shipbuilding and ship repair.
- Sagarmala Programme: This program aims to modernise ports, enhance coastal shipping, and improve logistics efficiency, indirectly supporting the shipbuilding industry.
- Atmanirbhar Bharat: The focus is on indigenous warship production, aligning with the broader goal of self-reliance in defense manufacturing.
India’s Shipbuilding Aspirations
- Currently, India’s share in global shipbuilding remains below 1%, highlighting the need for aggressive policy interventions. Under the Atmanirbhar Bharat initiative, the government has set ambitious targets:
- Increase the share of Indian-built ships in India’s fleet from 5% to 7% by 2030.
- Raise this figure to 69% by 2047.
