Shipbuilding is not merely an economic activity—it plays a crucial role in sustaining global trade and safeguarding national defence. Over 2,300 years ago, Kautilya’s Arthashastra—one of the greatest treatises on statecraft—underscored this very idea, devoting an entire chapter to the state’s role in promoting shipbuilding.
Tamil Sangam Literature—written between 300 BCE and 300 CE—underlined the skilled shipwrights and the construction of ships designed for both coastal and oceanic voyages, and documented the expertise India had in advanced shipbuilding techniques tailored for international commerce.
In the Middle Ages, travellers like Marco Polo and Niccolo de Conti praised the prowess of Indian shipbuilding.
However, by the early 19th century, British colonial policies, coupled with the denial of advanced technology during the Industrial Revolution, led to the decline of India’s commercial shipbuilding capabilities, and independent India inherited a weakened maritime sector. And, for many decades, defence shipbuilding remained the priority, and Indian shipyards focused heavily on naval contracts.
Now, India is trying to reclaim its rightful place in commercial shipbuilding—a sector that will play a crucial role in realising the country’s Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047. Recognising the urgency of fostering a positive discourse around shipbuilding and creating fertile ground for the dialectics of disruptive ideas from experts across the maritime sector, THE WEEK organised the second edition of its Maritime Conclave on the theme ‘Riding the Waves: Unlocking India’s Maritime Potential’, on September 15 and 16 at the Crowne Plaza, Kochi.
In his welcome address, Riyad Mathew, Chief Associate Editor and Director, THE WEEK, said the sector was undergoing a transformation driven by a series of reforms. “With global shipyards in China, Japan, and Korea facing heavy order backlogs, India is increasingly being viewed as an alternative destination. However, several structural and competitive challenges limit India’s share,” he said, underscoring the importance of bringing together industry leaders, policymakers, stakeholders and innovators at the conclave to discuss solutions and opportunities for the sector.
Addressing the conclave, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal reaffirmed the Narendra Modi government’s commitment to driving long-pending reforms in the maritime sector, including shipbuilding. “This year’s Union budget has given a strong impetus to the faster growth of our maritime sector through several path-breaking announcements: a Rs25,000-crore Maritime Development Fund, a new Shipbuilding Financial Assistance Policy, capacity-building in the shipping sector, extension of the tonnage tax scheme to inland vessels, continued customs duty exemption on inputs for shipbuilding and shipbreaking, infrastructure status for large ships, and the creation of shipbuilding clusters,” he said. “These transformative measures have the thrust to propel our maritime sector to new heights.” The minister added that under the Maritime Amrit Kaal Vision 2047, India is poised to attract investments worth Rs80 lakh crore, generate over 1.5 crore jobs and accelerate green shipping practices.
Sonowal noted that Kerala now anchors India’s vision of emerging as a maritime superpower by 2047, citing milestones such as the operationalisation of the Vizhinjam International Seaport—India’s first fully automated deepwater transhipment port—and the global expansion of Cochin Shipyard Ltd, the builder of INS Vikrant. Madhu S. Nair, chairman and MD, Cochin Shipyard Ltd, which co-hosted the conclave, noted that today, there is an all-around sense of positivity in whatever India is trying to do. “For the first time, we are, let me say, reimagining ourselves as a country,” he said. “This was long overdue, but today we finally have the environment to do so.”
However, Nair also highlighted some crucial issues. “Last year, India’s shipping trade was about $85 billion, of which almost 90 per cent was paid to foreign shipping companies,” he said. “This cannot continue.”
Shipping has multiple subsystems—shipbuilding being the largest, but there are at least 50 more: like insurance, financing, arbitration, auxiliary supplies, trade support and seafaring. “Today, Indian shipping is nothing to boast about,” said Nair. “We have just about 1,500 ships. We are far behind, and this situation cannot go on. As a nation, we have now decided to act. Government and industry must come together to realise our true potential.”
In shipbuilding, India currently accounts for less than 1 per cent, while China, Korea and Japan together hold a 90 per cent market share—though all three are now grappling with significant order backlogs. Nair observed that while historical and economic factors explain their dominance, such an imbalance is unnatural and unsustainable. “For the first time, India is actively reaching out to Japan and Korea,” said Nair. “They will need partners, and India—with its vibrant democracy, robust systems and assured economic success—is a natural choice.”
Experts note that in the last decade, Indian ports have undergone a remarkable transformation. Pradeep Jayaraman, CEO, Adani Vizhinjam Port Private Limited, however, noted that currently only two Indian ports feature in the world’s top 30 and that India handled just over 22 million TEUs (twenty-foot equivalent unit—measure of cargo capacity, based on 20-foot container) last year—less than half of what a single Chinese port achieved. Jayaraman added that even though a modern port like Vizhinjam—which became operational in 2024 and, within less than a year, crossed the 1 million TEU threshold—has already demonstrated its potential, the port suffers from inadequate connectivity, limiting its potential. Jayaraman added that while India competes in manufacturing and services with strategies like China Plus One, without matching infrastructure the country cannot attract the capital or create the business success required.
The panel discussions examined the challenges and opportunities India faces in light of the ambitious targets the country has set for itself in the maritime sector. In the shipbuilding domain, India has set the target to be among the top 10 by 2030 and top five by 2047. This means producing about 1 to 1.5 million GT (gross tonnage) by 2030, and consistently delivering at least that much every year, and by 2047, raising the capacity close to 10 million GT.
“Compare this with India’s current output—last year we were just below 1,00,000 GT—and it becomes clear that we must rapidly build up capacity in terms of docks, shipyards and design capabilities,” said Hariraj P., chief operating officer, Smart Engineering & Design Solutions (India) Private Limited. The young industry leader, however, noted that this offers a mega opportunity. “To put it in perspective, 1 million GT of shipbuilding would require about 30,000-35,000 skilled workers, including 15 per cent engineers and about 30-35 per cent welders,” he said. “Globally, there is already a shortage of skilled manpower—countries like Korea and even Japan are looking to India for welders and technicians. So this is a huge opportunity for us to train and supply both for domestic and international demand.”
Hariraj added that when it came to design, the existing global ship designs did not fully fit the future requirements of the industry. “This gives India tremendous scope to innovate and develop new designs tailored for evolving needs,” he said. “The positivity is there, the policy framework is supportive, but we must remain realistic about where we stand.”
Captain Ankur Arora, global market leader (commercial) at Bureau Veritas Group, noted that the narrative has shifted from “Can India build?” to “What can India build, and how fast?” He added that India still has a long way to go before it can attract foreign companies to build ships here.
Pankaj Chadha, vice president at Larsen & Toubro, said that to make India competitive and attractive for foreign companies, low-cost financing and enabling policies are essential—but equally critical are skilled manpower, strong balance sheets, efficient cash-flow management and rapid adoption of technology. “Despite our demographic dividend, India faces labour shortages, so technology must step in to ensure projects are executed on time,” he said.
Biju George, director (shipbuilding) at Mazagon Dock Shipbuilders Ltd—which designed destroyers and frigates for the Indian Navy—outlined key technology “buckets” that are redefining the maritime sector. His list included: robotics and automation; augmented and virtual reality; green and hybrid ships; 3D printing; artificial intelligence; cybersecurity; advanced materials; design optimisation, and IoT applications such as predictive maintenance. “The Make in India drive, under the broader umbrella of IDDM (indigenously designed, developed and manufactured), supports this transformation,” he said.
However, MSMEs and startups working in the maritime sector face challenges. “The biggest is working capital,” said George. “For instance, a valve manufacturer has to invest in raw materials and casting, but only gets paid after delivery of pressure-tested valves to the yard. This requires significant upfront capital. Another issue is order assurance and scale—without adequate volumes, it’s hard for them to sustain. A third challenge is bank guarantees. Smaller firms cannot provide 100 per cent collateral for the guarantees required in large shipbuilding contracts. This discourages them from taking orders.”
Retired IAS officer and Federal Bank independent director Elias George noted that high interest rates, bank guarantees and collateral, combined with thin profit margins have crippled India’s shipbuilding industry. “With interest rates of 12-14 per cent against 2 per cent in competing nations, how can India hope to be the world’s fifth-largest shipbuilding nation?” he asked, adding that these “last-mile issues” have plagued the sector for 75 years and remain unresolved.
Feedback on government’s policies raised at the conclave will be compiled by THE WEEK and presented to Sonowal.
Alongside in-depth and often heated discussions on advanced shipbuilding and ship repair, the two-day conclave also featured sessions on port modernisation, regional prosperity through ports and disaster response at sea. Sessions on inland water transportation, the Kochi Water Metro, cruise tourism and maritime financing added further depth. Special sessions on skill development in India’s maritime sector were also held.
Sonowal made it a point to interact with students and cadets from various maritime institutions who attended the conclave. Eminent personalities such as Sunil Paliwal, chairperson of Chennai Port Authority, and Commodore P.R. Hari, chairman and MD, Garden Reach Shipbuilders and Engineers, moderated panel discussions. The experiences of circumnavigators Lieutenant Commander Dilna K. and Lieutenant Commander Roopa Alagirisamy, along with their mentor Commander Abhilash Tomy, were also among the highlights of the conclave.