 "India’s shipbuilding industry sees a potential boost as Japan and South Korea express interest in investments and collaboration.")
Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal, announced that Japan and South Korea are interested in investing in India’s shipbuilding industry. This could lead to direct investments, joint ventures, and technology sharing, enhancing India’s capabilities in this sector. To further develop shipbuilding, the ministry plans to create multiple clusters with the help of coastal states, aiming to improve India’s current position, which ranks 20th globally. Efforts include attracting private investments and addressing logistical needs, such as waterfront availability. The government is also focusing on creating common facilities, like dry docks and R&D centers, to support industry growth and competitiveness.
Union Minister of Ports, Shipping, and Waterways, Sarbananda Sonowal, recently revealed exciting news for India’s shipbuilding industry. Companies from Japan and South Korea are keen to invest in this growing sector, which could range from direct investments to joint ventures and technology sharing. This interest highlights India’s potential in shipbuilding, especially following the Maritime State Development Council (MSDC) meeting.
Currently, India ranks 20th in global shipbuilding, holding a mere 0.06 percent of the Market, while top players like China, South Korea, and Japan dominate with an 85 percent share. Sonowal outlined plans to develop multiple shipbuilding clusters in collaboration with various coastal states over the next few years, aiming for 2-3 clusters to be operational within a decade. This approach will ensure careful planning and resource allocation.
Moreover, new players are entering the field, rethinking their business strategies and considering shipbuilding. For example, Adani Ports and Special Economic Zone has shown interest in this sector. Encouragingly, the Indian government is committed to nurturing this industry’s growth by seeking support from coastal states to establish these clusters.
To facilitate development, the ministry is focusing on acquiring large land areas with waterfront access, which is essential for constructing and testing ships. Coastal states will also create policies and incentives, such as fast-track approvals and tax benefits, to streamline the process. Additionally, the government is addressing investment gaps by developing shared maritime assets like dry docks and research centers, reducing individual companies’ costs.
India must act quickly, as the share of cargo carried by Indian-owned vessels has plummeted to just 5.4 percent over the last decade. The government aims to reverse this trend and strengthen the nation’s shipbuilding capacity, ensuring that more Indian-built ships serve in both domestic and international waters.
-
What opportunities do investors have in the shipbuilding industry in India?
Investors can find opportunities in building ships, repairing vessels, and developing new technology. The growing maritime sector offers many prospects. -
Are there any government incentives for foreign investors in shipbuilding?
Yes, the Indian government provides various incentives like tax breaks, ease of doing business, and support for technology transfer to attract foreign investments. -
How can investors establish a partnership with local shipbuilders?
Investors can reach out through industry associations, trade shows, or direct contacts. Collaborating with local companies can help navigate the Market better. -
What is the current state of the shipbuilding Market in India?
The Indian shipbuilding Market is expanding, with increased demand for vessels, especially in defense and commercial sectors, making it a promising area for investment. - Are there any specific regions in India that are better for shipbuilding investments?
Yes, regions like Gujarat, Maharashtra, and Andhra Pradesh are gaining attention for shipbuilding due to their strategic locations, infrastructure, and existing facilities.
