South Korea’s largest shipbuilding conglomerate, HD Hyundai Group, is accelerating its global market expansion by transplanting “Korean shipbuilding DNA” into India’s shipbuilding industry through collaboration with the country’s largest state-owned shipyard.
On July 6, HD Korea Shipbuilding & Offshore Engineering (KSOE), the shipbuilding holding company of HD Hyundai Group, announced the signing of a long-term comprehensive cooperation agreement (MOU) with India’s Cochin Shipyard Limited (CSL).
Located in Kerala, southern India, CSL is 67.91% owned by the Indian government. The shipyard has the capability to design, construct, and repair a wide range of vessels, from commercial ships to aircraft carriers. Over the past five years, it has successfully delivered 70 ships, including 60 small commercial vessels and 10 military ships.
Under the agreement, the two parties will advance strategic cooperation in multiple areas, including design and procurement support for CSL, technical collaboration to enhance production efficiency and ensure global-quality standards, and workforce skill development and training system improvements. Notably, they also plan to jointly explore shipbuilding order opportunities in India and overseas markets.
This partnership aligns with the Indian government’s *Maritime India Vision 2030* and *Maritime Amrit Kaal Vision 2047*. The government has established a Maritime Development Fund worth approximately 250 billion rupees (about $29 billion) to strengthen domestic shipbuilding and maritime infrastructure through policy support.
India’s shipbuilding industry is experiencing rapid growth. According to market research firm Ken Research, the Indian shipbuilding and repair market surged from $90 million in 2022 to $1.12 billion in 2024—a 12-fold increase. FineExtra Research predicts the market will expand from $90 million in 2022 to $8.12 billion by 2033, with an annual growth rate exceeding 60%.
HD Hyundai Group expects this agreement to enhance its influence in India—the world’s most populous country and an emerging market—while further boosting its global competitiveness in shipbuilding.
An HD Hyundai Group representative stated, “This collaboration serves as a springboard for both HD Hyundai Group and CSL, as well as a turning point in realizing India’s national maritime vision ahead of schedule. Leveraging our accumulated technology and expertise, we will support CSL in securing global competitiveness while exploring ways to foster joint growth with Korean suppliers.”
CSL is India’s largest state-owned shipbuilding and repair yard and a pioneer in high-tech green shipbuilding. In recent years, it has focused on developing alternative fuel vessels, including hydrogen fuel cell ferries and ammonia-powered ships. According to DNV, green ships currently account for 50% of CSL’s order backlog.
India’s Modi administration has been signaling its interest in partnering with South Korea’s shipbuilding industry since last year. On December 3, 2023, an Indian delegation—including Sh. R. Lakshmanan, Joint Secretary of India’s Ministry of Ports, Shipping, and Waterways; CSL Chairman and Managing Director Madhu Nair; and Shipping Corporation of India (SCI) Chairman and Managing Director Arun Kumar Gupta—visited HD Hyundai Heavy Industries’ Ulsan shipyard. They were welcomed by HD Hyundai Heavy Industries Vice President and Shipbuilding Division Head Cho Min-su.
This marked the first visit by Indian shipbuilding officials to HD Hyundai Heavy Industries’ shipyard in a decade, following Prime Minister Modi’s trip to South Korea in 2015. After touring the Ulsan shipyard—which can build over 50 large vessels annually—and learning about its advanced eco-friendly ship technologies, the delegation remarked, “India requires large-scale vessels of various types.”
The delegation’s visit aimed to find partners to develop India’s shipbuilding and shipping industries, with a key goal of “securing 1,000 new commercial ships.” The Indian government plans to expand its fleet from 1,500 to 2,500 vessels, including container ships, LNG carriers, VLCCs, and car carriers. In addition to HD Hyundai Heavy Industries, the delegation also toured shipyards operated by Hanwha Ocean and Samsung Heavy Industries.
Under Modi’s leadership, India has set ambitious goals: to rank among the world’s top 10 shipbuilders by 2030 and the top five by 2047—up from its current sub-1% global market share. To achieve this, India has sought urgent collaboration with South Korea, urging Korean shipbuilders to invest and jointly establish shipbuilding and repair clusters in India.
India faces pressing challenges in enhancing its maritime competitiveness. With 95% of its trade reliant on shipping, the country spends approximately 110 trillion won ($55 billion) annually on chartering foreign vessels. If current trends continue, this cost could skyrocket to 500 trillion won ($250 billion) by 2047 as trade volumes grow.
Despite having 28 shipbuilders, India primarily constructs small and medium-sized vessels like coastal cruise ships. It lacks the capability to build large container ships, VLCCs, and car carriers independently, necessitating expanded capacity.
South Korea’s shipbuilding industry—which overcame a prolonged downturn in the 2010s and has rebounded strongly—is seen as an ideal partner. Since emerging in the 1970s, Korea rapidly surpassed Japanese and European competitors, becoming the world’s top shipbuilder by the late 1990s and maintaining its leading position for nearly two decades.
Though recently overtaken by China, Korea retains strong competitiveness. Centered around Busan, Ulsan, and Geoje, its shipbuilding ecosystem remains robust. While facing price competition from China and Japan’s restructuring efforts, Korean shipbuilders have maintained technological leadership through innovations like next-gen LNG carriers and eco-friendly dual-fuel vessels.
Korea’s expertise spans energy carriers (for large-scale crude oil and LNG imports), container ships (handling massive cargo volumes), and military vessels (addressing security concerns with North Korea). Post-Ukraine war, its LNG carriers—critical for energy security—have gained global acclaim.
In 2024, Korea’s three major shipbuilders collectively returned to profitability after 13 years, enabling increased R&D investments.
India hopes to cultivate a shipbuilding cluster with Korea’s help. Reports suggest India plans to launch pilot projects with Korean partners at its best-equipped shipyards, later disseminating the acquired know-how to domestic yards. Beyond the “Big Three” Korean shipbuilders, India is also discussing deeper collaboration with Korean marine equipment manufacturers to strengthen the entire supply chain.
