India is embarking on a voyage to transform its shipbuilding industry, aiming to become a global leader in this crucial sector. With a vision to capture a ₹20 lakh crore market by 2047, the government is steering towards a future where Indian shipyards dominate the seas. But this journey is fraught with challenges, requiring strategic navigation and decisive action to reach the desired destination.
Currently ranked 20th in shipbuilding and repairs, India has set an ambitious goal: crack the top 10 by 2030 and the top 5 by 2047. This ambition is enshrined in Maritime India Vision 2030 and Amrit Kaal Vision 2047, reflecting the nation's determination to become a maritime superpower.
However, the path to shipbuilding supremacy is not without obstacles. Historically, India's shipbuilding industry has been hampered by a lack of access to capital. Building a ship is a long-term investment, with returns taking years to materialize. This has made it difficult for Indian shipbuilders to secure the necessary funding, particularly given that ships are not classified as infrastructure, limiting access to long-term financing options.
To address this challenge, the government is launching a ₹30,000 crore Maritime Development Fund (MDF). This fund will combine government contributions with private investments and public sector company participation to provide easier and cheaper financing for shipbuilders. Additionally, a credit note scheme will incentivize shipowners to scrap old vessels and build new ones in domestic shipyards, further stimulating the industry.
Beyond financing, India is also focusing on upgrading its port infrastructure. A ₹1.25 lakh crore investment aims to modernize ports, reduce wait times, improve cargo handling, and enhance connectivity. These improvements will create a more efficient and supportive ecosystem for shipyards, facilitating smoother operations and boosting productivity.
International collaboration is also key to India's shipbuilding ambitions. Partnerships with leading shipbuilding nations like South Korea and Japan are being pursued, offering access to cutting-edge technology, expertise in green shipping, and best practices in shipyard management. By establishing shipbuilding clusters and attracting foreign investment, India aims to accelerate its technological advancement and competitiveness in the global market.
These efforts are already attracting attention from major players. The Adani Group's recent announcement of a ₹45,000 crore shipbuilding project at Mundra Port in Gujarat exemplifies the growing interest in India's shipbuilding potential. With global shipyards fully booked until 2028, Adani aims to capitalize on the increasing demand for eco-friendly ships, targeting a $62 billion (₹5.2 lakh crore) market by 2047.
However, challenges remain. While the MDF addresses the critical issue of capital access, scaling up production will require substantial working capital. Industry experts believe that production-linked incentives (PLIs), similar to those successfully implemented in the electronics manufacturing sector, could be crucial in bridging the viability gap and making shipbuilding a truly thriving industry in India.
India's shipbuilding aspirations are bold and far-reaching. The government's proactive measures to address financing challenges and modernize infrastructure lay a strong foundation for growth. However, further steps, such as the potential introduction of PLIs and the classification of shipbuilding as essential infrastructure, could be crucial in accelerating the industry's development. India's success in this endeavor will not only boost its economic growth and create jobs but also enhance its maritime security and global competitiveness. The journey ahead is challenging, but with continued focus and strategic execution, India can navigate the waves and chart a course towards becoming a shipbuilding superpower.
