India is on an ambitious path to become a major player in the global shipbuilding industry by 2030. In its latest move, the country is reaching out to South Korea’s leading shipbuilders—HD Hyundai, Hanwa Ocean, and Samsung Heavy Industries—for technical collaborations and joint ventures. This partnership is set to bolster India’s shipbuilding sector, which currently holds less than 1% of the global market share.
A high-level delegation from India, led by T K Ramachandran, Secretary of the Ministry of Ports, Shipping, and Waterways, recently visited South Korea to explore potential collaborations. The trip aimed to learn from the advanced shipbuilding techniques of South Korea, the world’s second-largest shipbuilding nation. During their visit, the Indian team engaged in positive discussions with South Korean shipyards, focusing on enhancing India’s shipbuilding capabilities, particularly in large vessels like Very Large Crude Carriers (VLCCs) and LNG carriers. Despite Indian shipyards being proficient in building small to medium-sized ships, they lack the infrastructure and technical expertise to construct larger, specialized vessels. Moreover, Indian shipyards face challenges in terms of longer construction timelines and higher lead times for procurement compared to their South Korean and Japanese counterparts. By partnering with South Korean firms, India hopes to streamline processes, improve productivity, and acquire advanced technologies for ship design, automation, and green shipping initiatives.
The Indian government is preparing a comprehensive shipbuilding policy to support this push, including subsidies for building different types of vessels, including green ships. Additionally, India plans to introduce a ship recycling credit note scheme to encourage both domestic and global fleet owners to dismantle their old ships at Indian yards. The government also aims to establish three maritime clusters in Andhra Pradesh, Gujarat, and Odisha to further enhance shipbuilding infrastructure. India’s goal is to capture 20-25% of the global shipbuilding market in the coming decades, a move that could generate significant economic growth, create jobs, and position India as a shipping powerhouse by 2047. Through strategic collaborations, the country is poised to expand its shipbuilding sector, leveraging international expertise to meet the growing global demand for vessels.
