Unfortunately, India doesn’t have very many shipyards that can construct commercial ships. This is the key thing they have to tackle,” said Dr Ranjan Varghese, Chief Executive Officer of Steel Ships, a Hong Kong-based shipbuilding EPC company.
Recognizing this challenge, the government is preparing to spend nearly ₹20,000 crore to set up shipbuilding clusters across the country. These clusters are planned not only in Gujarat but also at Dugarajapatnam in Andhra Pradesh, Kendrapara in Odisha, Thoothukudi in Tamil Nadu, and multiple locations in Maharashtra including Dighi, Jaigad, Vijaydurg, and Bankot. The cluster-based model aims to create anchor shipyards supported by ancillary industries, shared facilities, and improved connectivity to ensure cost efficiency and resource optimization.
During Saturday’s event, MoUs will be signed with five states to establish these mega shipbuilding clusters. Officials said this strategy reflects a long-term vision to build capacity and capability, aligning with India’s maritime strategy that seeks to reduce dependence on foreign shipbuilders, especially in the commercial sector.
The timing of these initiatives is critical. Global shipbuilding is dominated by East Asian nations such as China, South Korea, and Japan, which collectively command over 90 percent of the market. India’s entry into the field has so far been limited, with most domestic shipyards engaged in defense projects or smaller-scale commercial vessels. To compete, India must invest heavily in technology, infrastructure, and manpower training, while also ensuring that global shipping companies see the country as a reliable and cost-competitive destination for building vessels.
Industry observers point out that India’s growing role in international trade, its expanding energy needs, and its strategic location along global shipping routes make it well-placed to build a shipbuilding ecosystem. However, they caution that execution will be the real test. Past attempts to promote commercial shipbuilding have faltered due to inadequate policy support, high costs, and stiff competition from established players abroad.
This time, the government’s cluster approach, backed by large-scale private investment and the involvement of both state-run and private shipbuilders, signals a more determined effort. With Gujarat at the forefront and several other coastal states being brought into the fold, India is laying the groundwork for a shipbuilding future that could alter the global balance in the industry.
If these projects succeed, India could begin to shed its peripheral role and move toward center stage in the global shipbuilding arena—transforming its long coastline from a geographic advantage into a genuine industrial powerhouse.
