India Aims for Global Top 10 in Shipbuilding by 2030

The Indian government is set to introduce a new shipbuilding incentive scheme with the goal of boosting India’s shipbuilding sector to the top tier globally. The Ministry of Ports, Shipping, and Waterways (MoPSW) is working on a plan that will offer substantial support to Indian shipyards until 2035. The ambitious target is to move India from its current 22nd position in global shipbuilding to within the top 10 by 2030, and the top five by 2047. This initiative aligns with the Maritime India Vision 2030 and the Maritime Amrit Kaal Vision 2047, aiming to position India as a global maritime superpower.

The new scheme emphasizes sustainability, with the government providing 30% financial assistance for vessels powered by green fuels like methanol, ammonia, or hydrogen fuel cells. Additionally, ships with electric or hybrid propulsion systems will receive 20% financial support. These measures signify India’s entry into the emerging green shipping market and showcase the government’s commitment to decarbonizing the maritime sector. Despite India’s strategic importance in shipbuilding, the industry faces challenges such as inefficiencies, limited private participation, and insufficient policy support.

India currently holds a mere 0.05% share of the global shipbuilding market, compared to dominant players like South Korea, China, and Japan. However, with global shipyards booked until 2028, India has a unique opportunity to expand its shipbuilding capacity and become a key player in the global supply chain. Green ship demand to meet decarbonisation goals also presents a significant opportunity, with the market expected to reach $62 billion by 2047. As India strives to solidify its position as a global maritime leader, the shipbuilding sector could become a vital driver of economic growth, creating jobs, boosting exports, and contributing to the country’s GDP.

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