Datanomics: Better Russia ties likely to push shipbuilding sector

India's shipbuilding ambitions gain traction as Russia eyes joint polar-vessel production and HD Hyundai plans a Tamil Nadu shipyard, even as private yards outpace public ones

Russia’s First Deputy Prime Minister Denis Manturov recently said the two countries were exploring joint production of polar-class vessels in India, which would give a boost to its shipbuilding capabilities. South Korean conglomerate HD Hyundai has also announced plans to build a shipyard in Tamil Nadu. Last month, speaking at the India Maritime Week 2025, PM Narendra Modi had emphasised the importance of building a domestic fleet and increasing shipbuilding to become a major global player. 

 

India’s share down in the last decade

 

India’s share in global shipbuilding came down from 0.15 per cent in 2014 to 0.06 per cent in 2024. China, already the global leader in shipbuilding, increased its share to 54.57 per cent in 2024 from 35.89 per cent in 2014. The shares of South Korea and Japan also fell. 

 

Ship deliveries by PSUs fell despite rising orders 

In 2023-24, India’s public sector companies delivered only 19 per cent of the ships ordered to be built in the year — down from 26.67 per cent in 2022-23. On the other hand, India’s private sector shipbuilding companies saw a continuous improvement in the ship deliveries, with over 67 per cent of ships on order being delivered in 2023-24 — up from 57 per cent in 2022-23. 

 

Public sector employs 75% of people in shipbuilding 

In 2023-24, over 19,000 people were employed in the Indian shipbuilding and ship-repairing industry, in both public and private sector — growing by 42 per cent from the 2019-20 employment numbers.