India is taking significant steps to expand its domestic shipbuilding capacity, planning to develop eight large industrial clusters along its extensive coastline. According to a report by Mint on Monday, five of these will be brand-new greenfield projects, while three involve the expansion of existing facilities.
India’s Union Minister of Ports, Shipping and Waterways, TK Ramachandran, told the newspaper that the government has identified all locations, pre-secured land parcels, and completed all necessary approvals. This plan is a key part of the “Self-Reliant India” strategy, aiming to establish India as a global leader in shipbuilding.
“States are progressing rapidly in establishing maritime clusters,” Ramachandran said in an interview with the business daily. “All state governments have formed special purpose vehicles to advance the projects, and the approved land parcels all have road and rail connectivity. Port-side infrastructure, including breakwater facilities, is also under construction.”
Global attention on the shipbuilding industry has increased significantly in recent years, particularly due to China’s dominance in the sector. Former US President Donald Trump has also called for revitalizing American shipbuilding, emphasizing its importance to national security and economic strength. He recently signed an executive order to formulate a Maritime Action Plan, established an Office of Maritime and Industrial Capacity within the National Security Council, and proposed imposing fees on Chinese-built ships entering US ports.
Ramachandran stated that the five new industrial clusters in Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra will form an integrated ecosystem covering ship manufacturing, equipment production, suppliers, fuel stations, insurance services, and ship leasing.
This move by New Delhi stems from India’s current share of less than 1% in the global shipbuilding market. The “Maritime India Vision 2030” and “Vision 2047” plan to position India among the world’s top ten shipbuilding nations by 2030 and among the top five by 2047. The report stated that the goal is to increase the proportion of Indian-built ships in the domestic fleet from the current 5% to 7% by 2030, and significantly to 69% by 2047.
Andhra Pradesh, Odisha, and Tamil Nadu have completed techno-economic feasibility reports, and the government is seeking international shipbuilders for collaboration in developing the clusters. While Ramachandran did not disclose the estimated investment, industry projections indicate that developing the necessary infrastructure over the next five to six years will require approximately 2 trillion rupees.
This plan is part of the broader “Maritime India Vision 2030,” which envisions a total investment of 3-3.5 trillion rupees in ports, shipping, and inland waterways. In addition to the new projects, three brownfield facilities will be upgraded: the ship repair yard in Vadinar, Gujarat; the shipyard in Kandla; and another shipbuilding base near the port of Cochin in Kerala.
Officials from India’s Ministry of Ports, Shipping and Waterways have visited shipbuilding hubs in South Korea, Japan, and Scandinavia to explore potential collaborations. Ramachandran revealed that partnership agreements between some Indian public and private sector companies and international partners are soon to be announced.
“While we see progress in the right direction, the global market is still dominated by China, South Korea, and Japan,” said Pushpank Kaushik, CEO and Head of Business Development (Subcontinent, Middle East & Southeast Asia) at Jassper Shipping. “To bridge the gap, a strong push for foreign investment and technology transfer is essential. If policies support this, it will not only attract international players but also elevate India’s position in the global shipbuilding industry.”
The newspaper had previously reported that, as part of the strategy to develop India as a global shipbuilding hub, the government plans to identify strategic locations along the east and west coasts.
In the FY2026 Union Budget, several key measures to support the domestic shipbuilding industry were introduced: establishing a 250 billion rupee government-industry collaborative Maritime Development Fund; revising the Shipbuilding Financial Assistance Policy to address cost disadvantages; and issuing Ship Recycling Credit Certificates to support the procurement of domestically built ships. The budget also included large ships in the unified master list of infrastructure, granting them access to more favorable financing conditions, and extended the import duty exemption on raw materials, components, and consumables for another ten years.
Source: Money Control
