India seeks shipbuilding investments from South Korea and Japan for major industry expansion.

According to information published by Mint on September 15, 2024, India has called upon South Korean and Japanese ship manufacturers to participate in its ambitious plan to transform domestic shipbuilding.
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Artist rendering of naval shipyard. (Picture source: Generated by AI)

The Indian government is seeking investment and technology transfers from global shipbuilding giants, aiming to establish the country as a prominent global player in ship construction and repair. Indian officials recently met with South Korean authorities to gauge interest, and similar outreach is planned for Japan.

The initiative is part of a broader strategy to elevate India's shipbuilding industry, currently ranked 22nd in the world, with goals to break into the top 10 by 2030 and top 5 by 2047. The government has identified coastal states willing to provide land for shipbuilding clusters, with a focus on attracting companies like South Korea’s Hanwha Ocean Co. Ltd and Samsung Heavy Industries, as well as Japan’s Mitsubishi Shipbuilding Co. Ltd.

The drive for investment aligns with India’s “Maruti moment” vision—an effort to replicate the industrial revolution that began with Japanese carmaker Suzuki’s entry into the Indian automobile market in the 1980s. The Ministry of Ports, Shipping, and Waterways aims to raise India’s share of global tonnage from less than 1% to 5%, providing an alternative to dominant shipbuilding nations like China, South Korea, and Japan.

In support of this vision, India is finalizing a comprehensive shipbuilding mission, which will include policy incentives and infrastructure development to boost domestic capabilities. Plans also encompass ship recycling, with expansions proposed at locations such as Alang and the creation of new recycling centers in Andhra Pradesh, Odisha, and West Bengal.

The country’s shipbuilding sector, once a global contender in the early 2000s, has struggled in recent years due to a decline in market share. India currently operates 28 shipyards but is looking to reignite growth with this new push for foreign investment and collaboration.