India’s Shipbuilding Sector – Poised to Enter Global Top 5

Shipbuilding Sector Latest News

• The Union government has announced plans to make the country one of the world’s top five shipbuilding nations by 2047, with shipbuilding and repair driving the Blue Economy.

Introduction

• India’s maritime strength is integral to its economic and strategic ambitions. 
• Despite currently holding less than 1% share of the global shipbuilding market, the government has charted a clear path to position the country among the top five shipbuilding nations by 2047. 
• With initiatives under Maritime India Vision 2030 and large-scale infrastructure investments, India seeks to transform shipbuilding and repair into central pillars of its Blue Economy, generating employment, fostering sustainability, and boosting global competitiveness.

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Current Status of Shipbuilding in India

• India is the world’s 16th largest maritime nation, contributing around 4% to its GDP but less than 1% to global tonnage. 
• Indian shipyards, both public and private, primarily cater to domestic defence and commercial shipping demands, with limited global market penetration.
• Key indicators include:
  • Global Market Share: India accounts for under 1% of the $200 billion global shipbuilding industry.
  • Tonnage Contribution: Around 18 million deadweight tonnage, ranking 16th globally.
  • Seafarers’ Share: Indian seafarers represent 12% of the global maritime workforce.

Government Measures to Promote Shipbuilding

• The Government of India has adopted a multi-pronged approach to support the sector:
• Financial Support Schemes
  • Shipbuilding Finance Assistance Scheme to provide capital support.
  • Shipbreaking Credit Note Scheme to promote the recycling of ships.
  • Upfront subsidies of up to 30% for non-conventional (green) ships.
• Development Funds and Missions
  • $3 billion Maritime Development Fund, with 45% allocated to shipbuilding and repair, and 20% to enhance Indian tonnage.
  • National Shipbuilding Mission for industry-wide modernisation.
• Policy and Infrastructure Initiatives
  • 100% FDI under the automatic route in shipping and shipbuilding.
  • $82 billion investment plan to expand port capacity by 2035.
  • Promotion of shipbuilding and repair clusters.

Strategic Goals for Shipbuilding Growth

• The government has set ambitious targets for the sector:
  • By 2030: Enter the top 10 maritime nations globally.
  • By 2047: Secure a position among the top 5 shipbuilding powers.
  • GDP Contribution: Increase maritime sector’s share from 4% to 12% of GDP.
  • Seafarers’ Expansion: Raise India’s share of the global workforce from 12% to 25%.

News Summary

• At the INMEX SMM India 2025 event in Mumbai, Shantanu Thakur, Minister of State for Ports, Shipping and Waterways, highlighted India’s trajectory toward becoming a top-five shipbuilding nation by 2047. 
• He emphasised shipbuilding and repair as growth engines of the Blue Economy.
• The Director General of Shipping underscored that with India’s current maritime contribution at 4% of GDP, government schemes such as subsidies, financial assistance, and green shipbuilding efforts are vital to scaling up.
• Chairman of the INMEX Advisory Board noted that nearly 45% of the Maritime Development Fund is dedicated to shipbuilding and repair, showing unprecedented state commitment. 
• Meanwhile, private sector engagement, supported by liberalized FDI norms and public-private partnerships, has accelerated investments in maritime infrastructure.
• MD of Informa Markets India, added that with $82 billion planned investment in ports by 2035, India’s maritime sector is poised to become a cornerstone of national economic growth.

Source: TH