India Needs To Boost Shipbuilding Output to Join Global Leaders

Enhancing India's Shipbuilding Potential

According to a recent report by EY and FICCI, India has the potential to significantly scale up its shipbuilding and ship-repair industry. The key recommendation is to turn domestic vessel needs into a long-term demand situation, which would allow for better financing options and industrial growth.

The findings were released during the Maritime India Conference and Expo, highlighting a structured approach to consolidating ship requirements from various sectors such as public sector undertakings (PSUs), ports, and coastal operations.

Creating a Robust Demand Pipeline

The report advises establishing a national maritime demand mechanism. This would help create a rolling 10-year procurement pipeline by consolidating vessel requirements from multiple sectors, presenting a clearer picture of demand for Indian shipyards.

By focusing on domestic fleet renewal and needs arising from coastal shipping and inland waterways, the shipbuilding sector could better project orders. This predictability gives manufacturers, suppliers, and financial backers the confidence to invest.

Insights from Industry Leaders

Commander Gautam Nanda from EY India emphasized the importance of building a competitive maritime ecosystem in India. He stated, "To spark growth, it’s vital to transform fragmented demand into a structured plan that encourages investment from shipyards and suppliers alike. Stronger domestic supply chains, alongside accessible financing and coordinated development, can enhance the scale we aspire to reach."

Key Recommendations for Growth

• Strengthening Financing: Long-term construction financing and working capital support is essential for growth.
• Building Domestic Supply Chains: Enhancing capabilities in critical marine equipment will benefit from standardized testing and qualification measures.
• Integrating Shipbuilding and Repair: Coordinating these sectors can optimize the use of infrastructure and skilled workforce.
• Developing Maritime Clusters: Creating integrated clusters in key locations can improve access to suppliers and logistics.
• Skilling the Workforce: Collaboration among industry, academic institutions, and training centers is crucial for developing specialized skills.

A Strategic Maritime Position

India's unique geographic location positions it well for enhancing ship-repair capabilities. Around 7% to 9% of global maritime traffic passes within 300 nautical miles of its coast, signaling untapped potential in the ship-repair market.

The report also stresses the necessity of solid implementation plans and monitoring frameworks to ensure effective policy measures that boost domestic capabilities and competitiveness in the maritime sector.