Indian shipbuilders are stepping up efforts to attract foreign customers as global shipping companies seek alternatives to China for new vessel purchases. The initiative also aligns with New Delhi’s goal to expand the country’s shipbuilding industry.
“In the 21st century, India’s maritime sector is advancing with great speed and energy,” said Prime Minister Narendra Modi on Wednesday during India Maritime Week. He also reaffirmed the government’s commitment to supporting shipbuilding and port development.
The event brought together government and industry representatives from more than 85 countries, with over 500 companies showcasing their technologies.
New Delhi aims to transform India into a global maritime hub, seeking to increase the share of Indian ships in global cargo volumes from 1% to 20% by 2047, the centenary of the country’s independence.
In September, the government announced a 697.3-billion-rupee (US$7.86 billion) support package, which includes a maritime development fund to invest in shipbuilding and maritime infrastructure.
Cochin Shipyard, a state-owned company, is one of the cornerstones of India’s shipbuilding sector. Founded in 1972, its first facility was completed in 1982 with support from Japan’s Mitsubishi Heavy Industries. Over the past five years, it has delivered 70 vessels, including small merchant and naval ships, driven by strong domestic demand.
In the fiscal year ending in March, sales rose more than 20%, reaching about 50 billion rupees, while net profit also increased.
To boost further growth, Cochin is now targeting international demand, working with HD Hyundai, South Korea’s largest shipbuilder, under a memorandum of understanding signed in July for technical cooperation.
On October 15, Cochin announced it had received an order from French shipping company CMA CGM for six small liquefied natural gas (LNG)-powered container vessels with a capacity of 1,700 TEUs each.
Japan’s Mitsui O.S.K. Lines is also considering ordering tankers from Cochin. “The Indian government wants to see new ships built in India,” said company president Takeshi Hashimoto last month, according to Reuters. “If possible, we want to be involved in the project.”
India’s shipbuilding industry continues to expand, completing 200 vessels in fiscal 2023 — nearly three times the number built in 2020, according to Indian authorities.
A global shift to diversify orders away from China has provided additional momentum for Indian shipyards. During the administration of U.S. President Donald Trump, tariffs were imposed on China-built vessels, prompting companies to seek alternative suppliers.
In recent years, rising ship prices, driven by high material costs and order backlogs, have further opened opportunities for India amid a shortage of skilled labor in traditional shipbuilding nations.
China, South Korea, and Japan — the world’s top three shipbuilding countries — accounted for more than 90% of global output by tonnage in 2022. India still faces significant hurdles to climb the ranks, including workforce development and strengthening supply chains.
“I think the minimum timeframe to start is about 15 years, but full maturity will take much longer,” said Cochin Shipyard Chairman Madhu Nair on Wednesday, commenting on India’s shipbuilding growth prospects. “Nothing will happen overnight.”
Source: Valor Econômico
