India Seeks South Korea and Japan Investment to Boost Shipbuilding Industry

India is actively seeking investments and technology transfer from South Korea and Japan to establish shipbuilding and ship repair clusters within the country, aiming to boost the domestic shipping supply chain. With India currently holding less than 1% of the global shipbuilding market, dominated by China, South Korea, and Japan, the government is looking to leverage the expertise and resources of these countries.

The Ministry of Ports, Shipping, and Waterways has been engaging with South Korean and Japanese authorities to secure investments and technology for these clusters. Plans for a mega shipbuilding park spanning multiple states were discussed at the 20th Maritime State Development Council, with efforts to attract foreign companies for establishing shipbuilding and repair facilities in India.

To support this initiative, Union Minister Sarbananda Sonowal has reached out to chief ministers of states to provide land promptly if Japanese or Korean companies show interest in setting up these clusters. The goal is to replicate the success of the automobile revolution that began with Japanese carmaker Suzuki Motor Corp. establishing Maruti Suzuki India Ltd in the 1980s. India aims to rise in the global shipbuilding rank to the top 10 by 2030 and top 5 by 2047.

The proposed Maritime Development Fund, totaling Rs 25,000 crore, will focus on equity funding provided by the Centre, PSUs, pension funds, and the private sector to support indigenous shipbuilding. Currently, a significant portion of India’s foreign trade relies on foreign-owned vessels, resulting in substantial annual outflows. With India owning only 2% of the global tonnage, initiatives like Maritime India Vision 2030 and Amrit Kaal Vision 2047 aim to elevate the country’s shipbuilding and repair industry to compete on a global scale.

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