For decades, India’s shipbuilding industry was a global footnote, producing just 0.06% of the world’s ships while Vietnam built 17 times more and China, Korea, and Japan together commanded 95%. That narrative began shifting in 2025. A landmark moment came when European shipowner Stenersen awarded an Indian yard a $227 million contract for six chemical tankers — the first such newbuild in India’s history. Soon after, the Cabinet cleared a massive ₹69,725 crore package to transform the sector.
The package includes ₹24,736 crore in direct subsidies under SBFAS, ₹19,989 crore for brownfield and greenfield expansion under SbDS, and a ₹25,000 crore Maritime Development Fund, scaling to ₹70,000 crore. Targets are ambitious: Top 10 globally by 2030, Top 5 by 2047. Crucially, subsidies mandate 30% domestic value addition, ensuring localisation of components.
India’s major yards are scaling fast: Mazagon Dock eyes ₹1 lakh crore orders, Cochin Shipyard’s new dry dock enables Capesize builds, GRSE is close to a ₹33,000 crore Corvette order, Swan Defence has secured dual‑fuel bulk carrier contracts, and L&T Shipbuilding is consolidating defence builds.
Engines and systems are the next frontier. Kirloskar, BHEL, Bharat Forge, and BEL are driving indigenous propulsion, weapons, and radar systems. The real story now lies not in asking why India couldn’t build ships, but in tracking who supplies the yards with ₹44,700 crore of guaranteed runway.
Disclaimer: Not investment advice. Figures from PIB, Cabinet notifications, MoPSW guidelines.
