India’s shipbuilding industry : a golden opportunity for foreign players

India, with its rich maritime legacy and expansive coastline, is fast emerging as a strategic hub for global shipbuilding.

A growing maritime power

India boasts a 7,517-kilometre-long coastline, 19 coastal states, and two island territories—making it the 16^th largest maritime country in the world. As of 2024, the Indian fleet comprised 1,545 vessels with a total gross tonnage of 13.50 million tons. Yet only around 5% of India’s overseas cargo is currently carried by Indian-owned or flagged ships—a gap the government aims to nearly double by 2047.

Key trends driving demand

• Fleet Expansion: India’s coastal and inland fleet is expected to triple within the next 5–10 years.
• Vessel Replacement: Around 50% of India’s current fleet will require replacement over the next decade.
• Defense Modernization: Increasing focus on naval expansion is driving the need for advanced warships, submarines, and patrol vessels.

India’s “float” and “move” dependency

Despite its growth ambitions, India still imports many critical “float” (buoyancy) and “move” (propulsion) components. These include:

• Marine engines and propeller systems
• Navigation and radar equipment
• Marine-grade steel and coatings
• Environmental and safety systems
• Specialized shipbuilding and repair equipment

This import dependency creates a direct pathway for global manufacturers and technology firms to supply parts, offer services, or build production bases in India.

Key advantages for foreign players

1. Strategic Location: India’s central position in the Indian Ocean makes it a crucial node on global trade routes—ideal for shipbuilding and maritime logistics investment.
2. Expanding Maritime Trade & Naval Modernization: India’s growing commercial fleet and its naval modernization push create sustained demand for both civilian and defense vessels.
3. Favourable Government Policies: Policies like “Make in India” and the Shipbuilding Financial Assistance Policy (SFAP) offer incentives for joint ventures, local manufacturing, and technology transfer.
4. 100% FDI Permitted: Foreign Direct Investment of up to 100% is allowed via the automatic route (outside defense production), simplifying market entry.
5. Cost Efficiency: India provides a highly skilled labor force at competitive rates—ideal for engineering, electrical systems, and ship construction.
6. Green Shipbuilding Demand: India is adopting global environmental standards, creating demand for eco-friendly vessels and sustainable marine technologies.
7. Vibrant Ship Repair Market: With a large number of aging vessels, the Indian market has strong potential for maintenance, retrofitting, and repair services.

European presence in India

Some companies from the following European countries include:

• Norway: Kongsberg Maritime and Marinor are investing in marine technology and infrastructure in India.
• Denmark: Maersk and Topsoe focus on green fuels and digital port solutions under the Green Strategic Partnership.
• Belgium: DEME and Jan De Nul partner with Indian firms on dredging and infrastructure; Port of Antwerp-Bruges collaborates with JNPT on maritime training and development.
• France: Naval Group (submarine/naval construction), Thales (naval systems), CMA CGM, and Bolloré Logistics (shipping and port modernization) are actively involved in India’s marine sector.

These partnerships exemplify the value foreign companies can bring to—and derive from—India’s expanding maritime ecosystem.

How Expandys can help

While the potential is huge, entering the Indian market requires careful planning. From complex regulations to cultural nuances and bureaucratic procedures, foreign companies may face entry barriers and other hurdles.

Expandys specializes in helping international companies explore, enter, and thrive in the Indian market. Whether you’re a shipbuilder, component supplier, or technology provider, Expandys can help you:

• 📈 Craft market entry strategies aligned with your business objectives
• 🤝 Identify strategic partners or JV opportunities
• 📋 Guide you through India’s regulatory landscape

Contact Expandys today

👉 Discover how you can be part of India’s booming maritime sector.

The information in this article is for general guidance only and should not be considered professional advice.