Danish firms ready to pay premium to build ships in India: Denmark’s Ambassador
Danish companies are willing to pay higher initial costs to build ships in India as Western economies seek alternatives to China and South Korea amid tensions.
Denmark's Ambassador to India, Rasmus Abildgaard Kristensen, disclosed on Wednesday that Danish firms are prepared to shoulder elevated initial expenses for shipbuilding in India. This decision stems from geopolitical uncertainties compelling Western economies to diversify their shipbuilding supply chains. Kristensen articulated during a press conference, stating that while the initial ships constructed in India may be pricier compared to those produced in China or Korea, Danish entities are prepared to fork out a reduced premium.
Denmark perceives India as the most promising alternate to East Asia, where shipbuilding is predominantly concentrated. Danish companies have already commissioned approximately 10 ships in India, amounting to around 40,000 tonnes, with additional orders anticipated. In 2025, Chinese shipyards received approximately 35.37 million compensated gross tonnes (CGT) of new orders, constituting nearly 63% of the worldwide total, while South Korean yards secured 11.6 million CGT, or roughly 21%.
India is endeavoring to establish an alternative manufacturing base for shipbuilding by the year 2047, as outlined in its 40-fold shipbuilding expansion goal, propelled by the Sagarmala 2.0 initiative launched in 2025. Kristensen advised India to leverage this opportunity to "leapfrog" instead of emulating the traditional shipbuilding methods implemented by China and South Korea.
He projected that India will likely initially construct smaller vessels, such as coasters, before progressively transitioning to larger ocean-going ships as its capabilities and supplier ecosystem expand.
According to Kristensen, Europe will likely not revert to shipbuilding on an industrial scale. Instead, India should abstain from attempting to compete with the established methods employed in China and Korea for many years. Denmark and India solidified their Green Strategic Partnership in 2020, with maritime cooperation bolstered through the Indo-Danish Centre of Excellence on Green Shipping in 2025.
The partnership encompasses green shipping, digitalization, maritime training, port-state control, regulations, and sustainable ship recycling. A Denmark-India feasibility study is currently investigating prospects in naval and commercial shipbuilding, while a pre-feasibility study has identified potential green shipping corridors to and from India.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
