India’s Ambitious Voyage to Become a Global Shipbuilding Powerhouse

India is making a determined push to establish itself as a global hub for shipbuilding, combining strategic government initiatives, robust policy support, and growing domestic capabilities. This ambition, championed by Defence Minister Rajnath Singh, signals the country’s intent to play a significant role in the global maritime industry over the coming decades.

Singh said India has the potential to become a global hub for shipbuilding, ship repair and maritime innovation . (ANI photo) | Hindustan Times

A Visionary Leadership and Strategic Push

At the Samudra Utkarsh seminar, Rajnath Singh highlighted India’s growing prowess in shipbuilding, asserting that the country is capable of handling every stage of ship construction—from design and modular assembly to outfitting, repairs, and life-cycle support—entirely with domestic expertise. He emphasized the strength of India’s public and private shipyards, along with a network of small and medium enterprises, in creating a robust value chain that spans steel production, propulsion, electronics, sensors, and advanced combat systems.

Singh cited India’s recent naval achievements, including INS Vikrant, the nation’s first indigenous aircraft carrier, the stealthy Kalvari-class submarines, and modern frigates and destroyers, as clear examples of India’s growing technical sophistication and systems-integration capability. Beyond defense vessels, he outlined India’s ambition to become a hub for research ships, law-enforcement vessels, and commercial ships, establishing a comprehensive maritime ecosystem.

Policy and Financial Framework Supporting Growth

The government has introduced a comprehensive framework to translate these ambitions into tangible outcomes. A substantial financial package, amounting to ₹69,725 crore, has been approved to boost shipbuilding, including the Shipbuilding Financial Assistance Scheme (SBFAS) and other measures to reduce construction costs. Shipbuilding has now been granted infrastructure status, facilitating easier access to financing. Additionally, the Maritime Development Fund (MDF) provides long-term, low-interest funding to support both commercial and defense shipbuilding projects.

These reforms are accompanied by regulatory initiatives that ensure Indian shipyards have priority in government contracts while extending customs duty exemptions for raw materials. The government also envisions integrated shipbuilding clusters along the coastline, where suppliers, R&D units, and shipyards work together, creating a synergistic and globally competitive industrial ecosystem.

Global Ambitions and Strategic Partnerships

India has set an ambitious target of securing a 5% share in the global shipbuilding market by 2030 and aims to rank among the top five shipbuilding nations by 2047 under the Amrit Kaal Vision. Achieving this requires not only domestic scale-up but also international collaboration. Several MoUs with countries like Japan and South Korea have been signed, enabling technology transfer, knowledge sharing, and joint development of advanced maritime technologies.

Moreover, India is positioning itself as a preferred destination for ship repairs and retrofits in the Indo-Pacific, leveraging its cost advantage, technical expertise, and reliability. This approach not only enhances India’s maritime influence but also strengthens strategic partnerships across the region.

Challenges and Opportunities Ahead

While India’s shipbuilding sector has immense potential, it faces several challenges. High capital costs, dependence on imported critical components, and skill gaps in advanced shipbuilding techniques pose ongoing hurdles. Additionally, ensuring long-term, affordable financing remains a priority to maintain global competitiveness against established shipbuilding nations like South Korea and China.

Despite these challenges, India’s achievements are noteworthy. Cochin Shipyard Ltd., one of India’s premier facilities, can construct vessels up to 120,000 deadweight tonnage, and Indian shipyards currently have hundreds of vessels on order, demonstrating tangible industrial growth. The government’s focus on green and sustainable shipbuilding also aligns with global trends to decarbonize shipping, further enhancing India’s global competitiveness.

The MGMM Outlook

India’s determined push to become a global shipbuilding hub marks a significant step toward strategic autonomy and industrial self-reliance. With visionary leadership from Defence Minister Rajnath Singh, the country is showcasing its ability to handle every stage of ship construction using domestic expertise, from design and modular assembly to advanced combat systems integration. Indigenous projects like INS Vikrant and the Kalvari-class submarines highlight India’s growing technical sophistication. By focusing on both defense and commercial vessels, India is strategically expanding its maritime capabilities and establishing a robust industrial ecosystem that includes SMEs, shipyards, and research units, positioning the nation as a reliable global player in shipbuilding.

The government’s policy and financial frameworks further strengthen this ambition. Initiatives such as infrastructure status for shipbuilding, the Shipbuilding Financial Assistance Scheme, and long-term low-interest funding are reducing barriers and fostering growth. International collaborations with countries like Japan and South Korea enable technology transfer and joint development, while India leverages cost advantages to attract ship repair and retrofit projects. Despite challenges like high capital costs and skill gaps, India’s clear focus on innovation, sustainability, and global competitiveness underscores a decisive shift toward becoming a trusted maritime powerhouse in the decades ahead.

(Sources: Hindustan Times, Economic Times, PIB)