India Poised to Become a Global Shipbuilding Powerhouse Within a Decade
India is steadily charting a course to transform its maritime sector, aiming to emerge as the world’s fourth-largest shipbuilder over the next ten years. Sanjeev Sanyal, a member of the Prime Minister’s Economic Advisory Council, recently underscored that while India currently accounts for less than one percent of global ship construction, the structural foundations for a massive scale-up are firmly in place.
Speaking at a recent industry event, Sanyal highlighted that India’s strategic advantages—including its status as the world’s second-largest steel producer, a vast labor force, and established naval design capabilities—provide a unique springboard for commercial expansion.
Bridging the Gap in Global Maritime Dominance
The global shipbuilding landscape is currently heavily consolidated. China, South Korea, and Japan command approximately 95 percent of the global market, with China alone responsible for 55 percent of all production. Against this backdrop, India’s current output remains negligible. However, Sanyal noted that the technical expertise gained through complex naval projects, such as the construction of aircraft carriers, proves that India has the requisite engineering prowess to transition into building high-demand commercial vessels like large tankers and container ships.
The urgency for this expansion is driven by national security and economic sovereignty. Currently, 95 percent of India’s trade by volume and 75 percent by value is transported via maritime routes, yet the vast majority of this cargo is carried by foreign-owned vessels. With a modest fleet of only 480 ocean-going ships, India remains precariously dependent on international shipping lines. Sanyal warned that a coordinated withdrawal by a few major global carriers could leave the country’s trade networks paralyzed, highlighting the critical need for a homegrown fleet.
Policy Reforms and Infrastructure Investment
The government has recognized these vulnerabilities and is aggressively modernizing the maritime ecosystem. In 2025, the Union Cabinet approved a substantial financial package of Rs 69,725 crore specifically aimed at reviving the shipbuilding and maritime sectors. Beyond mere funding, the government has granted “infrastructure status” to the industry, a move designed to lower capital costs and attract long-term private sector investment.
A critical pillar of this transformation has been the complete overhaul of India’s antiquated maritime legal framework. The government has successfully replaced several laws dating back to the 19th century with modern legislation that aligns with international standards, effectively removing red tape that previously stifled growth.
A Strategic Vision for the Future
Sanyal emphasizes that money alone cannot solve the systemic challenges of the industry; rather, it requires sustained focused attention and a shift in priority. By fostering private sector participation and focusing on ship flagging and indigenous ownership, India is looking to shift the power dynamic in global shipping.
This push for modernization also honors India’s rich maritime legacy. Sanyal, a vocal proponent of India’s nautical heritage, was the architect behind the “Stitched Ship Project,” which successfully recreated the INSV Kaundinya—a vessel built using ancient techniques without a single nail. The ship’s successful Indian Ocean voyage earlier this year serves as a symbolic reminder of India’s deep-rooted maritime history, which the government is now pairing with cutting-edge 21st-century technology to reclaim its seat at the global shipping table.
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