New maritime policy can revive India's shipbuilding, boost employment

India Maritime Week 2025 and new policy measures aimed at reviving shipbuilding have brought the sector into focus. The recent approval by the Union Cabinet of a ₹69,725 crore package for the shipbuilding and maritime sector — including a₹25,000 crore corpus in the Maritime Development Fund — combined with the corpus of ₹24,736 crore under the Shipbuilding Financial Assistance Scheme, underscores the push to revive the country’s shipbuilding industry. Despite its over 11,000-km coastline, India accounted for only 0.06 per cent of gross tonnage in global shipbuilding output in 2024, according to the United Nations Conference on Trade and Development (Unctad). An ageing fleet and high financing costs have left the country overly dependent on foreign-flagged vessels for trade and energy security.

 

The government’s plan, as recently articulated by Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal, is to expand India’s own fleet and flagged ships, reduce foreign dependence, and aim to be self-reliant. India’s shipbuilding tradition is not new. From the dockyards of Lothal in the Indus Valley to the 19th century Bombay Dockyard, the country has a proud maritime legacy. But after Independence, the sector lost momentum. Reviving the sector now requires focus on commercial shipbuilding, where its global footprint remains negligible. Countries like China, the Republic of Korea, and Japan have 95.15 per cent of the global market. With these nations facing heavy order backlogs, India can emerge as an alternative destination.

 

The creation of a Maritime Development Fund can provide the much-needed long-term, low-cost capital, which shipyards and shipping companies require. But translating this financial outlay into shipbuilding capacity will demand more than money. Execution speed, coordination among multiple agencies, and streamlining regulatory approvals will be critical. Currently, shipbuilders face complex clearances that deter investment and delay delivery schedules. A single-window mechanism for shipbuilding projects could make a tangible difference. Equally vital is building partnerships for maritime decarbonisation and technology transfer. As global shipping transitions towards green propulsion, India cannot afford to lag. The recent collaboration of Cochin Shipyard Ltd with HD Korea Shipbuilding and Offshore Engineering, for example, can accelerate the process by combining domestic legacy, infrastructure, and expertise with advanced technology, and global experience.

 

The sector’s revival can also become a major employment generator. Developing local supply chains for marine equipment, ranging from propulsion systems to digital navigation tools, would not only create jobs that require skill but also reduce import dependence. India’s Vision 2047, which aspires to place the country among the world’s top five shipbuilding nations, is ambitious but achievable. From the ancient dockyards to the modern shipyards, India’s shipbuilding story has come full circle. The challenge now is to ensure it sails forward, not just with history behind it, but with purpose and momentum ahead.