Current Status of the Shipbuilding Sector
- Valuation: The Indian shipbuilding industry was valued at $1.12 billion in 2024, up from $90 million in 2022.
- Major Ports: India has 13 major ports and over 200 other ports.
- Shipyards: There are 30 shipyards (public and private), including notable ones like:
- Public Sector: Cochin Shipyard Ltd., Hindustan Shipyard Ltd., Garden Reach Shipbuilders & Engineers, Mazagon Dock Shipbuilders Ltd.
- Private Sector: L&T Shipbuilding, Reliance Naval & Engineering Ltd.
Key Government Initiatives
- Maritime Development Fund: ₹25,000 crore announced in Budget 2025.
- Sagarmala Programme: Aims for modernization and efficiency in logistics with ₹5.8 lakh crore investment by 2035.
- Atmanirbhar Bharat: Focus on indigenous warship production.
Economic Growth Potential
- Global Market Share: The shipbuilding sector can significantly boost manufacturing and create jobs.
- Projected Growth: Expected to reach $8 billion by 2033 (CAGR of 60%).
- Maritime India Vision 2030: Aims to position India among the top 10 shipbuilding nations.
Challenges Hindering Growth
- Competitive Ecosystem: Long construction timelines and inconsistent quality standards.
- Capital Costs: High upfront investment and lack of low-cost financing.
- Dependence on Imports: Reliance on foreign suppliers for critical components.
- Infrastructure Issues: Smaller, less automated shipyards lead to inefficiencies.
- Domestic Demand: Preference for second-hand foreign ships over new Indian vessels.
Measures for Acceleration
- Domestic Manufacturing: Strengthen local production of shipbuilding components.
- Dedicated Financing: Establish a Shipbuilding and Maritime Financing Institution for low-interest loans.
- Revamp Infrastructure: Modernize existing shipyards and create maritime SEZs.
- Buy Indian Policy: Ensure government orders favor Indian shipyards.
- Integration with Renewable Energy: Develop green hydrogen-powered vessels.
Way Forward
- India’s shipbuilding sector has the potential for robust growth, but requires structural reforms, improved financing, and a focus on indigenous manufacturing to overcome existing challenges.