Smart tech brings sea change in shipbuilding as revival gathers pace

Artificial intelligence (AI) is another game-changer, used to optimise ship design, predict maintenance needs, and streamline production schedules

Ship
India was historically a global leader in shipbuilding. Government incentives and technologies like AI and robotics are accelerating the country’s drive to reclaim market share in shipping
Pranjal Sharma
3 min read Last Updated : Sep 28 2025 | 10:45 PM IST
With a combination of fiscal disincentive and physical destruction, the British colonial government decimated the Indian shipbuilding industry. As the modern industry is revived with incentives, emerging technologies will accelerate its growth. 
The industry is undergoing a transformation, driven by the integration of advanced technologies that are reshaping how ships are designed, constructed, and operated. Robotics and automation are now central to modern shipyards: Tasks such as welding, painting, and material handling are increasingly performed by robotic systems. Some shipyards have introduced humanoid robots capable of executing complex operations like precision welding and inspection to improve safety and efficiency. 
Artificial intelligence (AI) is another game-changer, used to optimise ship design, predict maintenance needs, and streamline production schedules. AI systems help shipbuilders make data-driven decisions that reduce errors and enhance overall productivity. Alongside, the use of advanced materials such as carbon fibre composites, nano coatings and recyclable thermoplastics is improving ship performance, reducing weight, and promoting sustainability. Recently, the United States launched the world’s first 240-tonne unmanned ship for autonomous naval missions. 
Three-dimensional printing (3D), or additive manufacturing, is also gaining traction in shipbuilding. It allows for the rapid production of spare parts and custom components, minimising waste and enabling faster prototyping. Complementing these innovations is the rise of digital-twin technology and the Industrial Internet of Things, which together enable real-time simulation of ship behaviour and centralised monitoring of shipyards. 
Sustainability is a major focus, with shipbuilders exploring alternative fuels like methanol, ammonia, and hydrogen. Hybrid propulsion systems and energy-saving devices are being incorporated to reduce emissions and comply with global environmental regulations. Finally, the development of autonomous vessels is pushing the boundaries of maritime innovation. These AI-powered ships can navigate and operate with minimal human intervention. 
The Indian shipbuilding industry, which uses some of these technologies, can be classified into three broad segments. The first includes large ocean-going vessels that serve both international and coastal trade routes. The second category comprises medium-sized specialised vessels such as port crafts, fishing trawlers, offshore support vessels, inland waterway craft, and other smaller utility boats. The third segment focuses on defence-related shipbuilding, which includes naval warships. 
Domestic shipbuilders have adopted advanced technologies like virtual reality and 3D modeling to enhance their design and engineering processes. These tools create an immersive virtual environment where engineers can visualise a stereoscopic 3D model of a warship. This immersive setup enables early-stage analysis of complex design challenges and facilitates ergonomic assessments, allowing for more informed decisions before physical construction begins.  
China, South Korea and Japan dominate shipbuilding with over 90 per cent of market share. India’s shipbuilding share is less than 1 per cent and ship ownership is less than 2 per cent. However, the domestic shipbuilding industry is ready to reinvent itself with the support of three major initiatives by the national government. The Shipbuilding Assistance Scheme (₹24,736 crore), the Maritime Development Fund (₹25,000 crore), and the Shipbuilding Development Scheme (₹20,000 crore) aim to significantly boost India's maritime sector. Together, these schemes are expected to attract investments worth ₹4.5 trillion and facilitate the construction of over 2,500 vessels. The goal is to draw global investments for the Indian shipbuilding ecosystem and reduce the country’s reliance on foreign vessels. 
Emerging technologies can reduce the money and time needed for building new ships. India’s technology must create solutions for an industry aching to regain its historic glory.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :BS OpinionShipbuildingShipbuilding sector

Next Story