Delhi
India’s ₹8.7 Lakh Crore Shipbuilding Push: A $105 Billion Bet to Rival China
1. India’s Strategic Shipbuilding Ambition
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Goal: Become a global shipbuilding powerhouse to compete with China, Japan, and South Korea.
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Government Investment: ₹8,69,725 crore (~$105 billion) approved on September 24, 2025.
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Current Position:
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Owns <1% of global commercial ships.
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Only 5% of trade (exports/imports) on Indian-flagged ships.
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15–20% higher production costs than Japan & Vietnam.
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2. Major Financial Initiatives
| Initiative | Allocation | Objective |
|---|---|---|
| Maritime Development Fund | $3 billion | Long-term financing for new ships & facilities |
| Shipbuilding Expansion Program | $2.4 million | Expand annual capacity to 4.5 million gross tons, establish technology centers & clusters |
| Capital Cost Grants | Up to 25% | Boost existing 61 shipyards and develop new infrastructure |
| Debt & Loan Support | N/A | Declaring shipbuilding as infrastructure lowers borrowing costs |
Key Insight: Grants and debt facilitation make Indian shipyards financially competitive globally.
3. Infrastructure & Capacity Expansion
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Anchor Shipyards: Core hubs to build ships nationwide.
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Ancillary Units: Manufacture parts and equipment for vessels.
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Port Throughput Ambition:
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Current: 2.6 billion tons
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Target 2047: 10 billion tons (~4× increase)
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Waterways & Port Modernization: Over 200 ports to be upgraded.
4. Technology, Training & Collaboration
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Foreign Partnerships: Collaborations with Japan & South Korea for technology transfer.
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Skill Utilization: India leverages its large workforce for shipbuilding.
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National Shipbuilding Mission: Single-window oversight of all programs for efficient execution.
5. Employment & Strategic Gains
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Seafarer Workforce: Increase from 12% → 20% of global seafarers.
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Economic Impact:
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Maritime sector supports 95% of trade by volume, 70% by value.
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Enhances energy, food, and national security.
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Supply Chain Resilience: Strengthens maritime routes and logistics networks.
6. Global Shipbuilding Landscape
| Country | Investment / Funding | Annual Capacity | Global Share (2023, Gross Tonnage) | New-Build Orders (2023) | Key Notes |
|---|---|---|---|---|---|
| India | ₹8.7 Lakh Cr (~$105 B) | 4.5M gross tons (target) | <1% | N/A | Anchor shipyards + ancillary units; 10B ton port throughput by 2047 |
| China | $50–60 B | 40+M gross tons | 51.9% | 74% | Dominates global shipbuilding; largest shipowning nation |
| Japan | $20–25 B | 10–12M gross tons | ~10–12% | ~15% | Technology partner for India |
| South Korea | $25–30 B | 15–18M gross tons | ~15% | ~10% | Collaborates with India & US |
| USA | $10–15 B | 5–6M gross tons | ~5% | 2–3% | Revitalizing industry via foreign partnerships |
Insight: China dominates global shipbuilding; India’s $105 billion push aims to narrow the gap by 2047.
7. Strategic & Financial Outlook
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Investment Scale: ₹8.7 lakh crore is one of India’s largest industrial pushes.
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Long-Term Vision (2047):
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Quadruple port throughput to 10 billion tons
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Increase global seafarer employment to 20%
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Achieve global competitiveness in shipbuilding
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Key Drivers:
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Grants & infrastructure support
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Debt facilitation and improved bankability
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Foreign technology and training partnerships
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🔹 Key Takeaways
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India is making a $105 billion strategic bet on shipbuilding.
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Focus on technology, funding, and capacity will reduce global competitiveness gap.
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By 2047, India aims to become a maritime leader, quadruple port throughput, and expand its workforce globally.
Disclaimer: The Profit India provides this content for informational purposes only. Figures and projections are indicative and may change. This article does not constitute financial or investment advice.
