Billionaire Gautam Adani plans to launch shipbuilding operations at the group’s main port in Mundra, India’s largest port.
India aims to climb the global shipbuilding rankings, targeting a top 10 position by 2030 and a top five position by 2047 under the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 initiatives.
The shipbuilding market has experienced steady growth in recent years, driven by factors such as increasing seaborne trade, rising energy consumption, and the demand for eco-friendly ships and shipping services.
The Asia-Pacific region accounts for the largest share of the global shipbuilding market, with China, Japan, and South Korea being the top shipbuilding countries.
Some of the major players in the global shipbuilding market include China State Shipbuilding Corporation, Mitsubishi Heavy Industries Ltd, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering Co, among others.
Billionaire Gautam Adani plans to launch shipbuilding operations at the group’s main port in Mundra, India’s largest port. This decision comes as shipyards in major countries like China, South Korea, and Japan are fully booked until 2028, leading fleet owners to explore alternative manufacturing sites such as India for their new vessels, according to a report by The Economic Times.
India aims to climb the global shipbuilding rankings, targeting a top 10 position by 2030 and a top five position by 2047 under the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 initiatives. Click here to connect with us on WhatsApp
India currently ranks 20th in the world in shipbuilding, with a market share of 0.05 per cent. Its flagged ships manage about 5 per cent of the country’s overseas cargo. As part of Mundra Port’s Rs 45,000 crore expansion plan, which received environmental clearance on May 15, Adani is planning to start a shipbuilding initiative. This information comes from the minutes of the Expert Appraisal Committee of the Ministry of Environment, Forest, and Climate Change.
The group’s investment in shipbuilding coincides with a global shipping industry increasingly focused on developing eco-friendly vessels to achieve decarbonisation goals. One estimate suggests that more than 50,000 ships will need to be built over the next three decades to replace existing fleets, the report said.
India’s shipbuilding market potential
According to a report by consultant KPMG prepared for a workshop held by India’s Ministry of Ports, Shipping, and Waterways on July 4, India’s potential commercial shipbuilding market could reach $62 billion by 2047.
KPMG estimates that the ancillary industry, including Tier-I, II, and III suppliers, could add $37 billion in value by 2047, potentially creating around 12 million jobs.
In order to meet the goals of Maritime India Vision 2030 and Amrit Kaal Vision, Indian shipyards must ramp up their annual production from 0.072 million gross tonnage (GT) to 0.33 million GT by 2030, and further to 11.31 million GT annually by 2047, the report said quoting KPMG.
Additionally, to achieve a minimum of 5 per cent share in the carriage of Indian overseas cargo by 2047, alongside the growth in domestic cargo capacity, an estimated additional fleet capacity of 59.74 million GT will be required over the next 23 years. This includes replacing aging ships and meeting the rising domestic shipbuilding demand.
Indian shipyards and operators
Indian shipyards face significant challenges competing with foreign counterparts in both domestic and global markets due to a cost disadvantage that can be as high as 35 per cent. Despite government efforts to provide state aid to neutralise tax and duty discrepancies and offset these cost differentials, it remains insufficient for effective competition against leading global shipyards.
India boasts eight state-owned yards and around 20 private facilities, including Larsen & Toubro’s facility in Kattupalli near Chennai, operated by the nation’s largest engineering and construction firm.
With the exception of Cochin Shipyard Ltd, listed in Mumbai under the Ministry of Ports, Shipping, and Waterways, other state-owned yards fall under the Ministry of Defence. These yards focus on constructing government-funded naval vessels.
Global shipbuilding industry
The global shipbuilding industry is valued at an estimated $150 billion in 2024 and is projected to reach $191.67 billion by 2030, growing at a CAGR of 3.6 per cent, according to a report by The Hindu.
The shipbuilding market has experienced steady growth in recent years, driven by factors such as increasing seaborne trade, rising energy consumption, and the demand for eco-friendly ships and shipping services. The market is expected to continue growing, with the Asia-Pacific region, particularly China, Japan, and South Korea, dominating the industry.
The Asia-Pacific region accounts for the largest share of the global shipbuilding market, with China, Japan, and South Korea being the top shipbuilding countries. These countries benefit from cheaper labour, strong government support, and well-established industry connections.
Some of the major players in the global shipbuilding market include China State Shipbuilding Corporation, Mitsubishi Heavy Industries Ltd, Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering Co, among others.
