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India needs a predictable, long-term demand pipeline for domestic vessels and better access to financing to accelerate the growth of its shipbuilding and ship-repair industry, according to a report by EY and the Federation of Indian Chambers of Commerce and Industry (FICCI).
The report highlighted that India repaired 418 vessels in FY23-24, of which 227 were handled by private-sector shipyards, with the country having around 42 dry docks.However, India's share in the global shipbuilding and ship-repair markets remains limited despite its strategic location. "India accounted for approximately 0.075% of global delivered shipbuilding GT in 2025, while its share of the global ship-repair market remained below 1% in 2024," the report said. India's commercial shipbuilding output has also remained modest and fluctuated over the years. The country's output reached a peak of 72,137 Gross Tonnage (GT) in 2021 before standing at 57,637 GT in 2025. However, the report noted that the increase in output "has not yet developed into a sustained growth trend." To address these challenges, the report recommended setting up a national maritime demand and market assurance mechanism to bring together vessel requirements from public sector undertakings (PSUs), ports, coastal shipping operators, inland-waterway agencies and other major users. It suggested creating a structured, rolling 10-year procurement pipeline to provide greater visibility of future orders to domestic shipyards. The report also said standardising vessel designs and introducing regular procurement programmes could improve shipyard productivity, encourage investment in the supply chain and make financing more accessible. India's growing requirements for fleet renewal, coastal shipping, inland waterways and port services could provide a strong demand base for domestic shipbuilders, helping them secure regular orders and plan long-term investments. Highlighting the role of international cooperation, the report said, "International partnerships can accelerate capability development in vessel design, production engineering, propulsion, automation, marine systems, supplier qualification and lifecycle support." It further stressed that the sector's growth would depend on commercially viable vessel procurement programmes, faster approvals, competitive financing, reliable suppliers and timely project delivery. Partnerships that combine international technology and market access with domestic manufacturing capabilities would also be important in strengthening India's position in the global maritime industry, it added. On the ship-repair segment, the report noted that India's location close to major international shipping routes offers significant opportunities to attract business. "India's proximity to key international shipping routes provides a sizeable market opportunity for ship-repair services; however, limitations relating to repair infrastructure, turnaround time, availability of spares and service reliability continue to constrain the country's ability to capture a larger share of this market," it said. (ANI)
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