India aims to become top-5 shipbuilding nation by 2047 with South Korea's help

"The Indian government has a vision to elevate its shipbuilding industry to among the world's top five by 2047. To achieve that, we want to actively draw on South Korea's ship construction technology, shipyard management experience and the broader industrial ecosystem."

Sarbananda Sonowal, India's minister of ports, shipping and waterways, made the remarks in an interview with The Herald Business and The Korea Herald during a recent visit to South Korea. "Through cooperation with South Korea's leading shipbuilders, I expect concrete investment proposals to emerge," Sonowal said.

Sonowal said India is working with HD Hyundai to develop a large new shipyard, and has also asked Samsung Heavy Industries and Hanwha Ocean to expand their investment in India.

Expectations are growing in South Korea's shipbuilding industry that new business opportunities will open up as India's government pursues orders for vessels worth approximately $23 billion.

Bilateral shipbuilding cooperation gained momentum following a summit between President Lee Jae-myung and Indian Prime Minister Narendra Modi during Lee's state visit to India on April 20.

The most concrete project currently under way is the construction of a new shipyard in Thoothukudi, in the southern Indian state of Tamil Nadu. HD Korea Shipbuilding & Offshore Engineering is participating alongside local shipbuilding-related institutions and financial bodies.

"A feasibility study for the project has been completed and preliminary approval at the national level has been secured," Sonowal said. "The goal is to agree on a joint-venture structure and finalize a detailed project report within the next six months." Specific investment terms, the shipyard's ground-breaking date and vessel delivery schedules have yet to be determined, but the detailed project report will cover the types of vessels to be built, key facilities, investment costs and a construction timeline, Sonowal said.

India's government hopes Korean companies, including Samsung Heavy Industries and Hanwha Ocean, will invest in building new shipyards in India or participate in expanding existing ones. A large-scale vessel ordering plan is also being pursued to attract Korean investment.

India's public sector plans to purchase more than 400 vessels worth approximately $23 billion in total. While no orders have been finalized, the pipeline represents a substantial potential market for South Korea's shipbuilding industry.

India also plans to make full use of a $7.8 billion shipbuilding support package approved in September last year. The package provides subsidies and incentives for new shipyard construction and covers vessel building costs. A ship construction financing scheme offers support covering 15 to 25 percent of contract values.

India currently relies heavily on imports for key marine equipment, including ship engines, propulsion systems, deck machinery, and electrical and navigation gear — an opening for South Korean marine equipment suppliers to secure new footholds in the market. The Korea Marine Equipment Association, which has 304 member companies, is exploring the establishment of a local base in Mumbai, and its members are reportedly preparing to enter the Indian market within the next two years.

Cooperation on workforce development is also taking shape. India's government and the Korea International Cooperation Agency are in talks to establish a specialized shipbuilding training center in Kochi, India. The two countries are also pursuing exchanges between their maritime universities and exploring ways to deploy Indian professionals who have gained experience at South Korean shipyards.

"The experience and international expertise of Indian workers who have worked at Korean shipyards will play an important role in developing the next generation of shipbuilding talent," Sonowal said. "They can contribute to raising the productivity and quality of Indian shipyards to a world-class level."