India, with its rich maritime heritage and vast coastline, is rapidly establishing itself as a strategic global hub for shipbuilding.
A growing maritime power
India has 7,517 kilometers of coastline, 19 coastal states and two island territories, making it the 16th largest maritime nation in the world. In 2024, the Indian fleet numbered 1,545 vessels, representing a total gross tonnage of 13.50 million tonnes. Yet only around 5% of India's international cargo is currently carried by Indian-flagged or Indian-owned vessels - a figure the government aims to almost double by 2047.
Key trends driving demand
- Fleet expansion: India's coastal and inland fleet is set to triple over the next 5-10 years.
- Vessel renewal: around 50% of the current fleet will need to be replaced over the next decade.
- Defense modernization: the growing emphasis on naval expansion is driving demand for high-tech warships, submarines and patrol boats.
India's dependence on "buoyancy" and "propulsion" components
India is still dependent on imports for many critical buoyancy and propulsion components, including:
- Marine engines and propeller systems
- Navigation equipment and radars
- Marine-grade steel and coatings
- Environmental and safety systems
- Specialized equipment for shipbuilding and repair
This dependence creates a direct opportunity for global manufacturers and technology companies wishing to supply parts, offer services or establish production bases in India.
Key advantages for foreign players
- Strategic position: India's central location in the Indian Ocean makes it a nerve center for global trade routes.
- Growth in maritime trade: India's expanding commercial fleet and modernized navy are generating sustained demand.
- Favorable government policies: initiatives such as Make in India and the Shipbuilding Financial Assistance Policy (SFAP).
- 100% FDI allowed: via the automatic route (excluding defense production).
- Cost efficiency: highly skilled workforce at competitive costs.
- Green shipbuilding: global environmental standards promoting sustainable marine technologies.
- Dynamic ship repair market: strong maintenance and modernization potential.
France-India maritime collaboration
France already plays a key role in the Indian maritime sector, with the presence of a number of companies, including
- Naval Group: partnership for the construction of submarines and naval vessels.
- Thales: navigation systems, radars, defense equipment.
- CMA CGM & Bolloré Logistics: maritime transport, logistics, port modernization.
These partnerships illustrate the value that foreign companies can bring - and derive - from India's booming maritime ecosystem.
How can Expandys help you?
Although the potential is enormous, entering the Indian market requires careful planning. From regulatory complexities to cultural and administrative peculiarities, foreign companies can face barriers to entry.
Expandys specializes in helping international companies explore, penetrate and prosper in the Indian market. Whether you're a shipbuilder, component supplier or technology player, Expandys can :
- 📈 Develop market entry strategies tailored to your objectives.
- 🤝 Identify strategic partners or joint venture opportunities
- 📋 Guide you through the Indian regulatory landscape
👉 Find out how you can be part of India's growing maritime sector.
The information contained in this article is for informational purposes only and should not be construed as professional advice.