The Indian government has earmarked land in Gujarat, Tamil Nadu, and Andhra Pradesh for significant shipbuilding and repair facilities. A nearly finalized agreement between South Korea’s HD Hyundai and Cochin Shipyard Limited (CSL) will see large ships built locally for intercontinental trade, with the Thoothukudi project in Tamil Nadu estimated at £10,000 billion upon completion.
This initiative aligns with the Ministry of Finance’s expenditure financing committee’s recent assessments for a maritime development fund of ₹25,000 crore and an enhanced shipbuilding policy valued at £18,090 billion, as outlined in the 2025–2026 budget. Additional multinational shipbuilding projects are being explored in the other two states, attracting interest from companies based in the Netherlands, France, and the Middle East.
Officials indicate that the shipbuilding sector will soon receive increased funding to bolster large ship production, aiming for a more significant share of the global market, currently less than 1%. By 2030 and 2047, India seeks to expand its fleet with domestically built ships, enhancing international trade and reducing reliance on foreign-flagged vessels.
Additionally, a financial aid scheme for domestic shipyards has been in effect since December 2015, supporting shipbuilding contracts until March 2026. Plans also include direct capital support for infrastructure. The Thoothukudi site is poised to become pivotal for the CSL-Hyundai project.
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