India’s ambitious shipbuilding roadmap seeks to convert maritime dependence into industrial strength through coordinated policy support, cluster-based development, and technology-led partnerships
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India recently announced plans to invest INR 3 lakh crore to develop shipbuilding clusters across the country under the Maritime Amrit Kaal Vision 2047. As part of these efforts, India has also outlined its first Special Purpose Vehicle (SPV), the National Shipbuilding & Heavy Industries Park, Tamil Nadu (NSHIP, TN), under its Shipbuilding Development Scheme (SbDS). As a landmark 50:50 joint venture between the V.O. Chidambaranar Port Authority under India’s Ministry of Ports, Shipping and Waterways (MoPSW) and the Tamil Nadu State Industries Promotion Corporation, the SPV exemplifies the spirit of cooperative federalism in accelerating India’s indigenous shipbuilding capabilities. Conceived as a greenfield mega shipbuilding and heavy industries cluster at Tuticorin to strengthen India’s commercial shipbuilding and repair ecosystem, NSHIP, TN aims to attract global investment, promote technology-driven manufacturing, and generate large-scale employment across skilled and semi-skilled segments.
Collectively, these developments indicate a paradigm shift in which India is actively positioning itself as a commercially competitive, export-oriented, and globally integrated shipbuilding ecosystem.
Following this, the Mumbai Port Authority (MPA) and the Maharashtra government plan to establish a co-owned SPV to develop the second greenfield shipbuilding cluster under the SbDS. The latest meeting between HD Hyundai Group Chairman Chung Kisun and India’s Prime Minister Narendra Modi to explore potential shipyard projects further underscores the country’s growing strategic appeal for international shipbuilding players. Collectively, these developments indicate a paradigm shift in which India is actively positioning itself as a commercially competitive, export-oriented, and globally integrated shipbuilding ecosystem. These initiatives not only align with India’s national vision of Make in India and Atmanirbhar Bharat — encouraging self-reliance through import substitution, green and sustainable shipbuilding practices, and the creation of globally competitive maritime infrastructure — but also advance its ambition to rank among the world’s largest shipbuilding and heavy engineering hubs.
Over 90 percent of global trade moves by sea, yet global shipbuilding remains concentrated in a few countries. China, South Korea, and Japan collectively accounted for 95 percent of new shipbuilding orders by tonnage as of 2024. These nations dominate a market valued at roughly US$150 billion annually, leaving most of the world reliant on a handful of economies for commercial vessels, with significant geopolitical and strategic implications. As global trade volumes expand and shipping routes face uncertainty, countries are recognising that domestic shipbuilding is not merely an economic activity but a strategic necessity. For emerging maritime economies like India, this is crucial for economic security, supply chain resilience, energy transport, the green transition, and geopolitical influence.
India’s current shipbuilding capacity is roughly 0.072 million GT, in stark contrast with China’s 39 million GT, South Korea’s 20 million GT, and Japan’s 9 million GT. This gap underscores India’s vulnerability to external supply shocks and freight volatility, reinforcing the strategic imperative to build domestic capability.
Despite maritime transport handling nearly 95 percent of India’s trade by volume and around 70 percent by value, the country accounts for less than one percent of global shipbuilding output, currently ranking approximately 18th worldwide. India’s current shipbuilding capacity is roughly 0.072 million GT, in stark contrast with China’s 39 million GT, South Korea’s 20 million GT, and Japan’s 9 million GT. This gap underscores India’s vulnerability to external supply shocks and freight volatility, reinforcing the strategic imperative to build domestic capability. Other mid-tier shipbuilding economies, such as Brazil, Vietnam, and the Philippines, illustrate that incremental growth is possible when policy, industrial strategy, and workforce development are aligned.
The shipbuilding capacity of a unit is defined as the “maximum carrying capacity of the ship that can be built by a shipyard, measured in terms of Dead Weight Tonnage (DWT), which is the number of tonnes (one tonne = 2,240 pounds) of stores, fuel, and cargo that a ship can carry.” India’s shipbuilding industry is broadly categorised into three segments:
As of 2023-24, India had 42 dry docks for ship repair, eight public-sector shipbuilding and repair companies, and nine dry docks operated by five major ports. The total workforce in Indian shipyards was just over 19,000, with officers accounting for about one-fifth. In that year, around 418 ships were repaired across both the public and private sectors. These figures show that India possesses a basic shipbuilding and repair capability but will require substantial structural reforms and a much stronger focus on workforce training and upskilling to compete globally.
India’s Shipbuilding and Ship Repairing Industry at a Glance
| Shipbuilding Capacity | ||
| S. No. | Name of the Company* | Capacity (in thousand DWT) |
| 1 | Cochin Shipyard Ltd. | 110.0 |
| 2 | Hindustan Shipyard Ltd. | 80.0 |
| 3 | Shoft Shipyard Ltd. | 10.0 |
| 4 | Patra Shipping Pvt. Ltd. | 10.0 |
| 5 | San Marine | 8.0 |
| Ship Repairing Capacity | ||
| S. No. | Name of the Company* | Capacity (in thousand DWT) |
| 1 | Cochin Shipyard Ltd. | 125.0 |
| 2 | Hindustan Shipyard Ltd. | 80.0 |
| 3 | Patra Shipping Pvt. Ltd. | 10.0 |
| 4 | Waterways Shipyard Pvt. Ltd. | 8.0 |
| 5 | Modest Infrastructure Pvt. Ltd. | 6.0 |
*Top 5 Reporting Companies
Source: Statistics of India’s Shipbuilding and Ship Repairing Industry 2023-24, MoPSW
Despite a coastline of 11,098 km and a rich maritime heritage, Indian-owned ships accounted for only 4.11 percent of the country’s overseas trade by tonnage in 2023-24, underscoring the need for both demand creation and capability expansion. India’s shipbuilding sector therefore must overcome real-world challenges, including securing a steady flow of domestic and strategic orders to ensure consistent yard utilisation; addressing financing barriers and structural constraints; deepening supply chains for key components such as engines, propulsion systems, and advanced electronics; and bridging the gap between current workforce capabilities and international standards.
Addressing these concerns will be central to realising India’s ambitious shipbuilding vision while ensuring inclusive growth. The country is likely to gain a comparative advantage in green shipping technologies and specialised niche segments, where an early-mover advantage could help India secure long-term industrial and strategic gains.
India’s shipbuilding ambitions are anchored in the Maritime India Vision (MIV) 2030 and the Maritime Amrit Kaal Vision 2047 (MAKV). Some of the main objectives include:
India’s shipbuilding strategy then rests on the following factors:
India is increasingly using low-carbon and green shipping as a strategic advantage. International regulations, including the International Maritime Organization‘s net-zero targets and the European Union Emissions Trading System for maritime transport, along with the need to renew fleets, are driving demand for vessels powered by alternative fuels. Today, more than half of new ship orders worldwide involve green technologies. Indian shipyards, such as Cochin Shipyard Limited, have already secured orders for hydrogen fuel-cell and other low-carbon vessels. Government initiatives such as the Harit Nauka Guidelines for inland vessels, the Green Tug Transition Programme, and incentives under MIV further demonstrate India’s commitment to a sustainable maritime transition.
Strategic collaborations with advanced shipyards can help India quickly absorb technology, train its workforce, and strengthen domestic research and development.
Strategic collaborations with advanced shipyards can help India quickly absorb technology, train its workforce, and strengthen domestic research and development. These partnerships and initiatives to upgrade the sector are expected to create around 3 million new jobs and attract approximately US$49 billion (INR 4.5 trillion) in investments. They also set an international example of how early engagement with leading global shipbuilders can help scale domestic industry. The main challenge, however, will be ensuring that these partnerships build lasting domestic capabilities and support competitiveness rather than delivering short-term capacity gains.
Private sector initiatives, such as Mundra Port, complement government-led efforts, demonstrating that India’s shipbuilding ecosystem is entering a new growth trajectory. Market analysis also suggests that the Indian shipbuilding industry, currently valued at US$1.12 billion, could grow at a CAGR of 60 percent to over US$8 billion by 2033 and potentially reach US$237 billion by 2047.
India’s shipbuilding policy marks a significant strategic shift, but whether it can achieve its full potential remains to be seen. Moving from the periphery of global shipbuilding to a credible competitor will require more than ambition; it will require consistent execution, steady demand creation, and partnerships that genuinely enable the transfer of technology and expertise. By combining financial incentives, cluster-based industrial growth, skill development, and international partnerships, the country is building an enduring sectoral framework. MAKV has the potential to make shipbuilding a central pillar of India’s economy, boosting self-reliance, technological capability, and global competitiveness. By 2047, India could not only secure its maritime interests but also emerge as a world leader in sustainable and advanced shipbuilding.
Anusha Kesarkar Gavankar is a Senior Fellow at the Observer Research Foundation.
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Dr. Anusha Kesarkar-Gavankar is Senior Fellow at the Observer Research Foundation. Her research spans the maritime economy, with a focus on sustainability, infrastructure, port-led development, ...
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