Photo: © Korn Vitthayanukarun
| Dreamstime.com
India is aiming to transform itself into one of the world’s leading shipbuilding nations with an ambitious long-term strategy that combines state funding, industrial policy, and international partnerships.
During a webinar hosted by maritime consultancy Drewry, executives outlined how the Indian government’s Maritime Amrit Kaal Vision 2047 aims to elevate India from its current position as the world’s 11th-largest shipbuilder into the top 10 by 2030, and the top five by 2047.
The strategy centres on expanding domestic shipbuilding capacity while developing a larger Indian-owned fleet, supported by new financing mechanisms, shipyard investment, and demand from state-owned companies.
Shailesh Garg, director and GM of Drewry India, said the strategy represented a departure from previous maritime policies and represented “a much more holistic long-term plan”.
“It covers just not the physical infrastructure, but also other themes like green and safe maritime training and research technology, smart ports, and development of Indian tonnage.”
India currently accounts for less than 0.5% of global shipbuilding output, with China dominating the sector, followed by South Korea and Japan. To close the gap, the government has identified multiple coastal shipbuilding clusters and introduced financial incentives including shipbuilding assistance, a maritime development fund, interest subsidies, and ship recycling credit notes.
The country is also seeking to stimulate demand, with Shipping Corporation of India already issuing tenders for new methanol dual-fuel-ready containerships and tankers.
According to Mr Garg, execution will determine whether the targets are achievable.
“We have a small window right now where people are looking for alternatives to what exists, and if we can really catch this wave that would be the great. So I think next three to four years are critical,” he explained.
This “wave” is exacerbated by geopolitical tensions and shifting global supply chains that create favourable conditions for India’s ambitions, he added.
“Whether you look at it from the policy perspective, the execution perspective, the foreign shipowners’ perspective, or even from the shipbuilders’ perspective, they want to expand beyond their country to invest,” said Jayendu Krishna, head of maritime advisors at Drewry.
“From all these perspectives, we see that we are heading in the right direction… I don’t see a reason why Indian government, if it continues to push ahead the momentum it has gained already, why it will not be able to achieve.”
However, India’s shipyards have traditionally concentrated on naval and smaller commercial vessels, leaving significant ‘capability gaps’ in large and specialised tonnage. Collaboration with established Japanese and South Korean shipbuilders is therefore expected to play a central role in developing the necessary design expertise, production processes, and advanced vessel technology.
Mr Krishna said: “Given that many of the Japanese and Korean yards have signed preliminary agreements with the Indian yards, there will be at least, to begin with, some technology sharing; whether technology transfer happens or not, I’m not sure.”
He added that the government’s longstanding objective was to secure technology transfer to facilitate the industry’s growth, particularly in specialised vessels, such as large LNG and LPG carriers.
Mr Garg explained that international collaboration would also help give shipowners greater confidence in India’s emerging commercial shipbuilding capabilities.
“I think we have to speed up and be there competing with some of the leading yards. These collocations are very important because that will push us toward building some of the not-so-simple vessels.”