India's Ports, Ships and Seas
Why India Builds Few Ships
Why China, South Korea and Japan dominate shipbuilding, why India's share is tiny, and the 2025 push to revive Indian shipyards.
China, South Korea and Japan build most of the world’s ships. India’s share of global shipbuilding is under 1 percent.
Why shipbuilding is hard
- Huge scale and capital.
- Cheap finance for buyers, which Asian leaders provide.
- Supplier networks for steel, engines and equipment.
- Skilled workforce.
India’s shipyards
- Cochin Shipyard: built INS Vikrant.
- Mazagon Dock and Garden Reach: warships.
- Private yards like L&T and some that went bankrupt, such as ABG Shipyard, linked to a big bank fraud case.
Why India lagged
- Higher costs of steel and finance.
- Small orders and irregular demand.
- Limited government support compared with Asian rivals.
The 2025 push
In 2025, the government approved a package of around 69,725 crore rupees for shipbuilding and maritime development, including:
- Financial assistance for shipbuilding.
- Shipbuilding clusters.
- A Maritime Development Fund.
India aims to be among the top 10 shipbuilding nations by 2030 and the top five by 2047.
An Indian shipping company orders a tanker. A Korean yard offers a lower price, faster delivery and cheap export finance, so the order goes to Korea.
Shipbuilding needs scale, finance and supplier networks.
- China, South Korea and Japan dominate shipbuilding.
- India's share is under 1 percent.
- High costs and irregular orders held India back.
- A 2025 package of around 69,725 crore rupees aims to revive shipbuilding.
No recording for this one yet - EconReader can read it aloud for you.