New Delhi launches 24 Billion shipbuilding drive with eight new clusters under Atmanirbhar Bharat
India has embarked on an ambitious maritime development programme, committing an estimated ₹2 trillion (approximately $24 billion) over the next five to six years to transform the nation into a prominent global shipbuilding and ship repair hub. This initiative, a cornerstone of the ‘Atmanirbhar Bharat’ (Self-Reliant India) vision, involves establishing eight new clusters across both coasts. Such a strategic investment underscores India’s resolve to bolster its blue economy, foster sustainable coastal development, and create numerous employment opportunities in port cities.
The comprehensive plan includes the development of five new greenfield shipbuilding sites in coastal states like Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra. Concurrently, three existing brownfield facilities in Vadinar, Kandla (Gujarat), and Kochi (Kerala) are slated for significant modernisation. Crucially, land acquisition and preliminary feasibility studies for all eight clusters have already been completed, signaling a rapid progression from conceptualisation to implementation. Special Purpose Vehicles (SPVs) established at the state level are tasked with overseeing project execution and mobilising crucial investments, ensuring seamless inter-state coordination.
This colossal initiative is a central tenet of the Maritime India Vision 2030, a strategic blueprint aimed at significantly enhancing India’s competitiveness in the global maritime sector. The Ministry overseeing maritime affairs has set an ambitious target to elevate India’s share in global shipbuilding from its current sub-1% to a robust 7% by 2030, with an even more audacious long-term goal of 69% by 2047, coinciding with the centenary of India’s independence. Such a leap would fundamentally realign the global shipbuilding landscape, currently dominated by a few key players.
To bridge the technological and capability gaps, the government is actively seeking strategic partnerships with leading global shipbuilding nations, including South Korea, Japan, and the Scandinavian countries. Ongoing negotiations are primarily focused on securing critical technology transfers and attracting substantial foreign direct investment. Furthermore, to incentivise private sector participation in these capital-intensive ventures, the government is exploring long-term contractual frameworks, an array of tax incentives, and other robust financial mechanisms designed to de-risk investments and ensure sustained industrial engagement.
Industry analysts suggest that this concerted push could indeed alter the global shipbuilding paradigm, offering a viable alternative as geopolitical shifts prompt countries to diversify their supply chains away from traditional hubs. The successful execution of this programme, however, will hinge on seamless coordination between central ministries, state governments, and private stakeholders. Speed of implementation, clarity in regulatory frameworks, and consistent policy support will be paramount in enabling India to establish its prowess in a sector poised for significant expansion in the coming decades, reinforcing the nation’s commitment to self-reliance and sustainable economic growth.
