New Delhi:India eyes a Maruti moment on the high seas. New Delhi hopes to replicate Maruti Suzuki’s 1980s automobile revolution in shipbuilding with a Rs 70,000-crore (nearly $8-billion) package announced earlier this week to revitalise domestic shipyards and the broader maritime ecosystem.
The plan, which includes a maritime development fund and a revamped shipbuilding assistance scheme, also invites South Korean and Japanese shipbuilders to establish operations in India—independently or with local shipyards—in a strategic move, given that about 95% of the country’s exportimport (EXIM) trade currently rides on foreign vessels. “With this new package, it's like the Maruti moment for shipbuilding,” says TK Ramachandran, secretary at the ministry of ports, shipping and waterways.
“But we have to create major domestic demand for ships to make these incentives work.” He also adds that India spends roughly $75 billion a year hiring foreign ships to carry its global trade—a figure that could soar to $400 billion by 2047 if nothing changes. Experts emphasise on the need for building a robust domestic fleet.
Calling this move a strategic imperative for the nation’s longterm maritime security and economic resilience, M Angamuthu, chairperson of Mumbai Port Authority, adds that India’s overdependence on foreign vessels becomes particularly vulnerable during times of global disruptions—such as pandemics, wars, or sanctions.
“A robust Indian fleet is essential to ensure continuity and sovereign control over the country’s critical supply chains,” he adds. India owns just 1,500 ships, of which only about 220 operate overseas for EXIM trade, and with barely a dozen shipyards capable of producing ocean-going vessels, the country accounts for less than 1% of global shipbuilding—compared with China’s 70% market share, followed by South Korea and Japan. Stating that the government has been in discussions with multiple Korean and Japanese companies, Ramachandran adds that several of those shipbuilders are operating at full capacity.
“They are choker-blocked with orders until 2028 or even 2029, so they are seeking alternative locations to build ships. With this incentive package, India is well positioned to attract them,” he says. Korean shipbuilders include Samsung Heavy Industries, Hyundai Heavy Industries, Hanwha Ocean and HD Korea Shipbuilding, while well-known Japanese companies such as Mitsubishi, Hitachi and Kawasaki also operate in shipbuilding. Madhu S Nair, chairman and MD of India’s largest shipbuilder, Cochin Shipyard, says his company has been in discussions with Hyundai, while another Indian firm is in talks with Samsung. He adds that the Korean and Japanese giants are seeking a “long-term marriage”, for which a mere incentive package would not suffice.
“To start with, there needs to be an assured order of around 100 new ships from PSUs such as ONGC, GAIL and other fertiliser and coal companies. Such assured demand will provide a cushion for any new collaboration—after all, no one wants to fall on hard ground, given the cyclical nature of shipbuilding,” he says.
The plan, which includes a maritime development fund and a revamped shipbuilding assistance scheme, also invites South Korean and Japanese shipbuilders to establish operations in India—independently or with local shipyards—in a strategic move, given that about 95% of the country’s exportimport (EXIM) trade currently rides on foreign vessels. “With this new package, it's like the Maruti moment for shipbuilding,” says TK Ramachandran, secretary at the ministry of ports, shipping and waterways.
“But we have to create major domestic demand for ships to make these incentives work.” He also adds that India spends roughly $75 billion a year hiring foreign ships to carry its global trade—a figure that could soar to $400 billion by 2047 if nothing changes. Experts emphasise on the need for building a robust domestic fleet.
Calling this move a strategic imperative for the nation’s longterm maritime security and economic resilience, M Angamuthu, chairperson of Mumbai Port Authority, adds that India’s overdependence on foreign vessels becomes particularly vulnerable during times of global disruptions—such as pandemics, wars, or sanctions.
“A robust Indian fleet is essential to ensure continuity and sovereign control over the country’s critical supply chains,” he adds. India owns just 1,500 ships, of which only about 220 operate overseas for EXIM trade, and with barely a dozen shipyards capable of producing ocean-going vessels, the country accounts for less than 1% of global shipbuilding—compared with China’s 70% market share, followed by South Korea and Japan. Stating that the government has been in discussions with multiple Korean and Japanese companies, Ramachandran adds that several of those shipbuilders are operating at full capacity.
“They are choker-blocked with orders until 2028 or even 2029, so they are seeking alternative locations to build ships. With this incentive package, India is well positioned to attract them,” he says. Korean shipbuilders include Samsung Heavy Industries, Hyundai Heavy Industries, Hanwha Ocean and HD Korea Shipbuilding, while well-known Japanese companies such as Mitsubishi, Hitachi and Kawasaki also operate in shipbuilding. Madhu S Nair, chairman and MD of India’s largest shipbuilder, Cochin Shipyard, says his company has been in discussions with Hyundai, while another Indian firm is in talks with Samsung. He adds that the Korean and Japanese giants are seeking a “long-term marriage”, for which a mere incentive package would not suffice.
“To start with, there needs to be an assured order of around 100 new ships from PSUs such as ONGC, GAIL and other fertiliser and coal companies. Such assured demand will provide a cushion for any new collaboration—after all, no one wants to fall on hard ground, given the cyclical nature of shipbuilding,” he says.
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