India Announces New Policy to Elevate Shipbuilding and Repair Industry

The Ministry of Ports, Shipping, and Waterways (MoPSW) is set to introduce a new shipbuilding and repair policy as part of its 100-day action plan. This initiative aims to boost India's global ranking in shipbuilding and repair. Maritime India Vision 2030 (MIV 2030) targets placing India in the top 10 globally, while Amrit Kaal Vision 2047 aspires for a top-five position.

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Focus on Indian Shipbuilding Industry

MoPSW Secretary TK Ramachandran, addressing a workshop on revitalising the Indian shipbuilding industry, stated, "MoPSW will come up with a new Ship Building and Ship Repair Policy soon under the 100-day action plan." The ministry's presentation highlighted the increasing trend of Indian overseas and coastal cargo. However, it also noted that the share of cargo carried by Indian-owned or flagged vessels has declined over the past decade to about 5.4%.

The workshop saw participation from over 100 individuals representing 50 organisations, including various government ministries, departments, shipping operators, and both public and private sector shipyards. The event underscored the need for immediate action to prevent further decline in the share of cargo carried by Indian vessels.

Economic Implications

The statement emphasised that owning a national fleet offers several advantages. These include fleet availability during crises, protection against embargoes, and safeguarding India's foreign exchange reserves currently spent on chartering and freight management charges to foreign entities. If Indian shipyards can meet the demand from the domestic shipping market, it could create an opportunity worth over USD 237 billion (Rs 20 lakh crore) by 2047.

Without intervention, the share of Indian-owned or built ships in India's shipping market could diminish further. This would leave Indian ships with no significant role even within the national market. The ministry's presentation stressed this point, highlighting the potential economic benefits of revitalising the industry.

Strategic Advantages

Revitalising India's shipbuilding sector is crucial for national trade. A robust domestic fleet ensures availability during emergencies and shields against international trade restrictions. Additionally, it helps conserve foreign exchange reserves by reducing reliance on foreign charters.

The MoPSW's commitment to enhancing India's shipbuilding capabilities is evident through its ambitious goals set under MIV 2030 and Amrit Kaal Vision 2047. These initiatives aim to elevate India's position in the global maritime industry significantly.

The upcoming policy is expected to address these challenges and leverage opportunities in the domestic market. By doing so, it aims to strengthen India's presence in global shipbuilding and repair rankings.

The workshop's discussions highlighted the importance of a strong domestic fleet for national security and economic stability. Participants agreed that immediate measures are necessary to reverse the declining trend in cargo carried by Indian vessels.

India's shipbuilding industry holds significant potential if adequately supported by policy initiatives. The MoPSW's new policy aims to tap into this potential, ensuring long-term growth and sustainability for the sector.

The concluding remarks at the workshop reiterated the need for collaborative efforts between government bodies and private stakeholders. This collaboration is essential for achieving the ambitious goals set under MIV 2030 and Amrit Kaal Vision 2047.

By focusing on these strategic areas, India can enhance its maritime capabilities and secure a prominent position in global shipbuilding and repair markets.