India can emerge as major shipbuilding power in next decade: Sanjeev Sanyal
India, which builds less than a percent of the world’s ships, can emerge as a credible fourth-largest shipbuilder over the next decade, Prime Minister’s Economic Advisory Council member Sanjeev Sanyal said on September 24. India has the ingredients needed to scale up, including its status as the world’s second-largest steel producer, an abundant labour force ...
India possesses the necessary ingredients to become a significant shipbuilder within the next decade, according to Sanjeev Sanyal, a member of the Prime Minister's Economic Advisory Council. On September 24, Sanyal stated that India, which currently builds less than 1% of the world's ships, has the potential to rise to a credible number four position in shipbuilding.
He cited factors such as India's status as the world's second-largest steel producer, an abundant labor force, and existing shipbuilding and design capabilities. Sanyal emphasised that India has the capability to build complex vessels, including aircraft carriers, which will serve as a foundation for expanding into commercial shipbuilding.
He highlighted that India's shipbuilding prowess lies in its ability to construct intricate vessels like aircraft carriers, making it plausible to build tankers as well. However, Sanyal stressed that India faces a steep challenge compared to China, South Korea, and Japan, which together account for 55% of global shipbuilding. He pointed out that India's share of global shipbuilding stands at less than 1%, while China, South Korea, and Japan collectively build 55% each.
India's heavy reliance on foreign ships for trade is another concern, as 95% of India's trade by volume and 75% by value is carried by foreign vessels. Sanyal emphasized the need for a long-term strategy to overcome this dependence, including investments in the navy, ship ownership, and the development of a robust shipbuilding industry.
The government has also taken steps to support the sector, including approving a Rs 69,725-crore package in 2025 to revive India's shipbuilding and maritime sector. This package includes measures to support shipbuilding and has given the maritime sector infrastructure status. Sanyal highlighted the importance of changing India's maritime legal framework, which dates back to the 19th century, and the government's efforts to modernize these laws.
He stressed the need for the private sector's involvement in shipbuilding, stating that while financial investments can help, the priority should be on creating an enabling environment for the industry's growth.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
