India is exploring ways to strengthen its domestic shipbuilding industry to reduce its $75 billion annual import bill on foreign vessels. With 95% of India’s trade dependent on foreign-owned ships, experts argue that investing in local shipbuilding could enhance economic security and reduce forex outflows.
Current Challenges in India’s Shipbuilding Sector
Despite being the 16th largest maritime country, India holds only 0.07% of the global shipbuilding market, compared to China (46.6%), South Korea (29.2%), and Japan (17.2%). The country also owns just 1.2% of the global fleet, with most Indian ships flagged under foreign jurisdictions like Panama and Liberia for tax benefits.
Government Initiatives to Boost Shipbuilding
The Indian government has launched several programs to revitalize the maritime sector, including:
- Maritime India Vision 2030: A blueprint for port modernization and shipbuilding expansion.
- Sagar Mala Program: A $123 billion investment in port-led industrialization and coastal infrastructure.
- Harit Sagar Initiative: Focused on sustainable shipbuilding and green maritime practices.
Can India Reduce Its Import Bill?
Experts believe that expanding domestic shipbuilding could cut reliance on foreign vessels, create jobs, and boost India’s global trade competitiveness. However, challenges such as limited financing options, high production costs, and lack of advanced shipbuilding technology remain obstacles.
With China, South Korea, and Japan dominating 93% of global shipbuilding, India must accelerate policy reforms to compete in the sector and reduce its dependence on foreign ships.
