India is gearing up to position itself as a major player in the global shipbuilding industry. As reported by Mint, the government’s initiative aims to create a comprehensive maritime ecosystem through a series of targeted measures.
Key components of this initiative include establishing a maritime development fund, revamping shipbuilding assistance programs, and implementing policies to enhance domestic capabilities in areas such as shipbuilding, repairs, financing, insurance, technical staffing, and dispute resolution. The ambition is to address all critical gaps in the maritime value chain.
According to sources, the objective is for India not only to build ships but also to be involved in financing, insuring, managing, and resolving related disputes. Currently, the shipbuilding market is largely dominated by China, South Korea, and Japan, which hold over 90% of the global share.
India, with less than 1%, aims to secure a position among the top 10 shipbuilders by 2030 and the top five by 2047. To achieve this, India is actively reaching out to Japanese and Korean shipbuilders to form joint ventures and replicate their successful shipping finance models.
Cochin Shipyard is reportedly exploring partnerships with Korean firms to boost shipbuilding capabilities in Kerala. The initiative also encompasses ship repair, recycling, cruise infrastructure, maritime arbitration, and staffing, with plans for new repair hubs in major cities like Kochi, Mumbai, Chennai, Kolkata, and Vadinar.
A substantial Rs 25,000 crore maritime development fund is being developed to attract private investments through blended finance. Additionally, a dedicated domestic maritime insurance entity, known as the India Club, is being considered to provide protection and indemnity coverage for coastal and inland shipping.
Private companies are also getting involved, with examples like Garden Reach Shipbuilders signing agreements with international firms. This overarching strategy is part of India’s broader shipbuilding mission to create a complete maritime ecosystem that supports both domestic and international interests.