India is taking major steps to expand its domestic shipbuilding capabilities, with plans to develop eight mega clusters along its vast coastline. Of these, five will be entirely new greenfield projects, while three will involve the expansion of existing facilities, a report by The Mint said on Monday.
Union Shipping Secretary TK Ramachandran told The Mint that the government has finalised the locations with pre-secured land parcels and all necessary approvals in place. This initiative is a key part of the Atmanirbhar Bharat mission, aimed at positioning India as a global leader in shipbuilding.
“States have made rapid progress in setting up maritime clusters,” Ramachandran said in an interview to the business daily. “All state governments have formed special purpose vehicles to implement the project with approved and identified land parcels, supported by road and rail connectivity. Seaside infrastructure, including breakwater facilities, is also under development,” he was quoted as saying.
The global focus on shipbuilding has intensified in recent years, especially due to China’s dominance in the sector. US President Donald Trump has also called for revitalizing America’s shipbuilding industry, citing its importance for national security and economic strength. He recently signed an executive order to create a Maritime Action Plan, set up a new Office of Maritime and Industrial Capacity within the National Security Council, and proposed imposing fees on Chinese-built ships entering U.S. ports.
The five greenfield clusters—planned in Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra—will host an integrated ecosystem covering ship manufacturing, equipment production, vendors, bunkering stations, insurance services, and ship leasing operations, Ramachandran said.
New Delhi’s push comes in response to its currently marginal share in the global shipbuilding market, which remains below 1%. The Maritime India Vision 2030 and Vision 2047 aim to place India among the top 10 shipbuilding nations by 2030, and among the top five by 2047. The goal is to increase the proportion of Indian-built ships in the domestic fleet from the present 5% to 7% by 2030, and a substantial 69% by 2047, the report added.
Andhra Pradesh, Odisha and Tamil Nadu have already commissioned techno-economic feasibility reports, and the government is exploring partnerships with global shipbuilders for the clusters. While Ramachandran did not disclose the estimated investment, industry projections suggest that developing the necessary infrastructure over the next five to six years will require about Rs 2 trillion. The new push is part of the larger Maritime India Vision 2030, which envisions Rs 3-3.5 trillion in total investments across ports, shipping, and inland waterways.
In addition to the greenfield projects, three brownfield facilities will be upgraded: a ship repair yard in Vadinar and a shipbuilding facility in Kandla (both in Gujarat), and another shipbuilding site near Cochin Port in Kerala.
Officials from the Ministry of Shipping have also visited shipbuilding hubs in South Korea, Japan, and Scandinavia to explore potential partnerships and joint ventures. Ramachandran indicated that some of these global tie-ups with Indian public and private sector players could be announced in the near future.
“While we’re seeing movement in the right direction, the global market is still led by China, South Korea, and Japan,” said Pushpank Kaushik, CEO and Head of Business Development (Subcontinent, Middle East, and Southeast Asia) at Jassper Shipping. “To close that gap, a strong push for foreign investment and technology transfer is essential. If policy supports that, it will not only bring in global players but also elevate India’s standing in the international shipbuilding arena.”
The business daily had previously reported on the government's strategy to identify strategic locations along both the eastern and western coasts of the country as part of its broader vision to develop India into a global shipbuilding hub.
In the Union Budget for FY26, several key measures were introduced to support the domestic shipbuilding sector. These include a Rs 25,000 crore Maritime Development Fund under a government-industry partnership, a revamped Shipbuilding Financial Assistance Scheme to address cost disadvantages, and credit notes for shipbreaking to support the purchase of domestically built vessels. The budget also added large ships to the harmonized master list of infrastructure, making their purchase eligible for easier financing terms, and extended basic customs duty exemptions on raw materials, components, and consumables for an additional 10 years.
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