India’s Shipbuilding Opportunity: Why We Must Act Now

India has a vast coastline—longer than the Great Wall of China. Yet, we spend a massive $75 billion annually to foreign shipping companies to move our goods across the globe.

This raises a crucial question:
Why doesn’t India build and operate its own ships?

A Global Industry Worth Billions

The worldwide shipbuilding industry is booming—valued at $150+ billion in 2024, projected to exceed $203 billion by 2033.

But the market is dominated by just three players:

China (62.4%)
South Korea (21.4%)
Japan (8.8%)

Together, they account for 93% of global shipbuilding.

India, on the other hand, sits far behind—ranked 22nd, with just $1.12 billion in exports in 2023.

India’s Shipping Weakness

Despite owning 1,526 ships, only 487 are used for global trade. China, in contrast, has over 6,000.

Why does this matter?

Because shipping isn’t just transportation—it’s about:

Controlling trade routes
Managing supply chains
Reducing foreign exchange outflows

Relying on other nations means we’re exposed to rising freight costs, geopolitical tensions, and supply disruptions.

What’s Holding India Back?

1. High Costs:

Small cargo ship: ₹75–85 crore
Large container ship: ₹8,000+ crore
Builders need 35–40% upfront capital
Indian interest rates: 9–10% vs global 4–8%

2. Lack of Government Support:

Global rivals get up to 40% subsidies
Indian private shipyards get no direct aid

3. Weak Ecosystem:

Few advanced shipyards
Shortage of skilled workers and suppliers
Delays and quality issues are common

4. Dependence on Imports:

India imports marine-grade steel, engines, navigation systems
Import duties raise the cost of shipbuilding

Can India Turn the Tide?

Yes—and here’s why it’s possible:

Strategic location: India sits on key global shipping lanes
Technical expertise: We already build aircraft carriers and submarines
Raw materials: India is a top steel producer—can shift to marine-grade steel

Government Support: A Turning Point

New Initiatives Include:

₹25,000 crore Maritime Development Fund to provide low-interest finance
10-year customs duty exemptions on key ship parts
Financial Assistance Policy for shipbuilders
Ship recycling credits to support sustainable practices
Infrastructure status for building large ships

Private Sector Momentum

Adani Group: ₹45,000 crore investment at Mundra shipyard
Swan Defence: $500 million in shipbuilding projects
Public-private funding model: Govt 49%, private 51%

Global Tie-ups & Local Growth

Cochin Shipyard: Exploring JVs with Hyundai, Hanwha, Samsung, Mitsui
GRSE: Partnering with Germany’s Carsten Rehder and UAE’s Aries Marine
Shipbuilding Clusters: Coming up in Andhra Pradesh, Odisha, Gujarat, and Tamil Nadu

Massive Infrastructure Push

₹1.66 lakh crore investment in ports and logistics
Corridors like IMEEC, Eastern Maritime Corridor, and INSTC to boost exports
U.S. tariffs on Chinese ships may open a new window of opportunity for India

Growth Potential: Eye on the Future

India’s shipbuilding grew from $90 million (2022) to $1.12 billion (2024)
Expected to hit $8.1 billion by 2033
Potential to unlock $237 billion by 2047
That’s a 60%+ CAGR, if momentum is maintained

Leading Players in India

GRSE: Targeting 28 ships by 2025; expanding domestic and global partnerships
Cochin Shipyard: Collaborating with DP World for ship repair hubs
Mazagon Dock: Working with ThyssenKrupp for submarines; eyeing Korean tie-ups

Final Thoughts: The Time Is Now

India’s shipbuilding journey is at a crossroads. The intent, funding, and partnerships are in place—but execution is the key.

This isn’t just about building ships. It’s about:

Gaining trade independence
Ensuring defense preparedness
Strengthening economic resilience

If India seizes this moment, the ripple effects will touch steel, logistics, manufacturing, and global trade.

The ocean of opportunity lies ahead. It’s time we build ships—and a future—to sail into it.

India’s Shipbuilding Opportunity: Why We Must Act Now