India’s global Shipbuilding market presence is negligible at 1%, overshadowed by the giants China, South Korea, and Japan.
Goa: India is seeking investments and technology transfer from South Korea and Japan to establish shipbuilding and ship repair clusters, promoting the domestic shipping supply chain.
CURRENT STATE OF INDIA’S SHIPBUILDING INDUSTRY
India holds less than 1% of the global shipbuilding market, dominated by China, South Korea, and Japan. The country’s foreign trade relies heavily on foreign-owned and foreign-flagged vessels, resulting in an annual outgo of USD 110 billion.
GOVERNMENT INITIATIVES
The government has proposed a Rs 25,000 crore Maritime Development Fund (MDF) to provide long-term, low-cost financial support and push for indigenous ship-building. The fund will be equity-based, with contributions from the Centre, PSUs, pension funds, and private sector.
MEGA SHIPBUILDING PARK PLANS
Plans for a mega shipbuilding park spanning multiple states were discussed during the 20th Maritime State Development Council (MSDC) in Goa. The government has invited South Korea and Japan to bring their technology and investments, promising to provide land for setting up shipbuilding and ship repair clusters.
INDIA’S FLEET REPLACEMENT NEEDS
India’s fleet currently stands at 1,526 vessels, with a gross tonnage of 14 million. However, about 44% of these vessels are over 20 years old, indicating a need for replacement in the coming years. The country spends close to USD 75 billion annually on leasing ships from outside.
Government Official Statement:
“The financing ecosystem for the shipping industry is not there in India. Entire value chain financing, insurance, ownership of ships, leasing, recycling, and repairs of ships happen abroad,”* said TK Ramachandran, Secretary in the Ministry of Ports, Shipping and Waterways (MoPSW).
