India’s Maritime Ambition: In the Age of Maritime Amrit Kaal
India stands at a critical juncture in its industrial and strategic journey
Once a formidable maritime power whose ancient vessels plied trade across the Indian Ocean and beyond, the country has in modern decades fallen far behind global competitors in shipbuilding. Today, it pays an estimated $75 billion every year to foreign companies to carry its cargo and vessels, money that flows out of the economy even as India’s own merchant fleet remains small. This gap — between a rich maritime history and a meagre present — is the central challenge of the nation’s Maritime Amrit Kaal Mission.
For centuries, Indian mariners and shipbuilders were celebrated for their craftsmanship and seafaring prowess. They connected coastal cities from Arabia to Southeast Asia and Japan, spreading culture and commerce. But with colonial rule and industrial shifts, the focus moved away from heavy engineering to other priorities. By the time the world embraced steel ships after the Industrial Revolution, India’s shipbuilding capacity had waned. New global leaders soon emerged. Japan surged ahead after the Second World War, followed by South Korea and China, transforming shipbuilding into engines of industrial growth and export strength.
Today, China dominates global shipbuilding with well over half of worldwide capacity. South Korea and Japan make up most of the rest, leaving India with barely a fraction of global output. In gross tonnage terms, India accounts for under one-tenth of one per cent of shipbuilding activity and ranks around twentieth globally. Even in ship ownership — the fleet of vessels registered under India’s flag — its share is under 1 per cent. In practical terms, nearly 92 per cent of India’s foreign trade by volume is carried on foreign ships.
These figures are more than economic trivia; they reflect a vulnerability. When the Covid-19 pandemic disrupted global supply chains, Indian exporters struggled as international vessels avoided or altered port calls. The Russia–Ukraine conflict complicated crude imports and routing. And during the Red Sea crisis, when Houthi attacks forced many Western carriers to detour around Africa’s Cape of Good Hope, India had too few vessels of its own to fully take advantage of its geographic position. These events underscored the strategic cost of relying on others for sea transport.
In response, the Indian government has launched bold policy initiatives under the umbrella of Maritime India Vision 2030 and Maritime Amrit Kaal Mission 2047. These programs aim not just to modernize ports and logistics, but to build a robust domestic shipbuilding ecosystem that can rank among the world’s top five. Central to this vision is a comprehensive package of incentives and funding reforms — including nearly ₹70,000 crore in targeted support to expand shipbuilding capacity, promote vessel ownership by Indian firms, and modernize repair and dismantling facilities.
A key component of this strategy is demand creation. The government has directed major state-owned companies in sectors such as oil and fertilisers to ensure that at least 30 per cent of their fleet needs are met by Indian vessels. This guaranteed baseline demand is designed to give domestic shipbuilders the confidence to scale — a crucial step in an industry where production volumes determine cost competitiveness.
Efforts to modernize the industry are also visible in collaborations and investments. India’s flagship shipyard, Cochin Shipyard Limited (CSL), has signed long-term agreements with global players and is expanding facilities to support large-scale block fabrication — the modern method of building ships in modular sections. Partnerships with international shipbuilders are being explored to bring technology, design expertise, and efficient processes into Indian yards. There are plans for new shipbuilding hubs and clusters along the east and west coasts, with potential greenfield projects that could create tens of thousands of jobs.
Another promising development is the interest shown by global shipping companies in Indian yards. For the first time, major international firms have placed shipbuilding orders in India, signalling a shift in perception about Indian capabilities and cost structures. This interest is partly shaped by global geopolitical dynamics — companies are diversifying supply chains beyond traditional centres like China and South Korea.
The defence and government sectors are also driving growth. Indian shipyards have built advanced naval vessels — from aircraft carriers to submarines — showcasing technical prowess in complex engineering. A growing fleet of indigenous warships and patrol vessels not only strengthens national security but also builds deep industrial skills that can cross over into commercial shipbuilding.
Yet, despite this momentum, several challenges remain. Indian shipyards generally operate with older machinery and lower levels of automation than their global peers, resulting in longer build times and higher costs. Supply chains for critical components like marine steel and specialised equipment are still largely imported, making indigenous manufacturing more expensive. Attracting skilled talent into a demanding industry with long project cycles has been difficult, hampering productivity.
The ship repair and maintenance sector — a lucrative segment of global maritime activity — has similarly lagged. While nations like Singapore, China, and the UAE have become go-to destinations for vessel overhauls and dry-dock services, India’s capacity remains limited. Enhancing these capabilities is part of the broader vision, as repair and maintenance can provide steady, high-value work for Indian yards while larger ship orders scale up.
Addressing these structural challenges requires sustained policy support beyond incentives. Industry experts argue for stronger industry-academia partnerships to develop workforce talent, more integrated maritime clusters with local suppliers, and regulatory reforms to ease project execution. There is also a push to rationalize taxes and levies that currently make Indian-flagged shipping less competitive.
Despite these hurdles, the timing of India’s push could not be better. As global ship demand begins to plateau after years of high growth, according to industry analysts, Indian demand for vessels and maritime services is set to rise. If India can leverage this window to build capacity, attract global partnerships, and evolve its domestic market, it might finally catch the shipbuilding bus it missed in the last century.
India may not yet rival the world’s shipbuilding giants, but the contours of a comeback are visible. Through sustained government action, clearer incentives, and a recognition of maritime power as national power, the country is positioning itself to finally re-enter an industry it once dominated. If momentum is maintained, the coming decades may see Indian-built ships once again becoming a common sight on global sea lanes — not as a nod to history, but as a marker of industrial renewal.
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