India is actively pursuing international collaborations to strengthen its shipbuilding industry, with a special focus on partnerships with Japan. Union Minister Sarbananda Sonowal recently held bilateral talks with Japan’s Vice Minister Yoshimichi Terada in Oslo on the sidelines of the 60th Nor-Shipping event.
The discussions covered multiple areas including shipbuilding, port development, smart islands, maritime training, and sustainability initiatives. Japanese investments in Indian shipyards, port digitization, green port initiatives, and workforce development were among the key topics. Both sides emphasized their shared vision for a sustainable and future-ready maritime sector.
Potential Investments and Policy Support
A notable development in India-Japan collaboration is the potential greenfield investment by Imabari Shipbuilding in Andhra Pradesh. Earlier this year, Imabari’s President, Yukito Higaki, led a high-level delegation to meet Andhra Pradesh Chief Minister N. Chandrababu Naidu to explore investment opportunities in shipbuilding.
Andhra Pradesh’s 2024 maritime policy incentivizes the establishment of shipyard infrastructure, adopting a cluster-based approach that designates specific port zones for shipbuilding and repair activities. Land leases are available for long terms (30–60 years) at nominal rates, offering a conducive environment for foreign investments.
India has approached major Japanese shipbuilding firms—including Imabari Shipbuilding, JMUC, Kanagawa Dockyard, and Mitsubishi Heavy Industries—for potential joint ventures. Additionally, Japan’s top shipping companies—NYK Line, MOL, and K Line—have been invited to explore investment opportunities in India’s maritime sector.
Opportunities for Joint Development
Collaboration between the two countries extends beyond shipbuilding. Co-development of ports and maritime industrial clusters as clean energy hubs is being explored, with a focus on green shipping technologies, port digitization, and sustainable logistics networks.
Japan, with its expertise in advanced vessel construction, automation, and green technologies, holds 15% of the global shipbuilding market. India, currently ranking 20th globally with 0.06% market share, aims to attract ¥5 trillion JPY (₹3.2 lakh crore or $34 billion USD) in Japanese investments by 2027.
India’s Strategic Advantage
India’s geographical location along key shipping routes, coupled with over 11,000 km of coastline, positions it as a potential maritime powerhouse. Nearly 95% of India’s EXIM trade by volume moves by sea, highlighting the strategic importance of the shipbuilding sector.
With over 40 shipyards producing navy vessels, offshore ships, and other commercial vessels, India’s domestic capabilities are growing, but the country still ranks just above 16th in global shipbuilding capacity. Strengthening the sector could reduce reliance on foreign yards, retain economic value, create jobs, and meet rising global demand.
Green and Skilled Workforce Initiatives
India boasts over 154,000 trained seafarers, offering opportunities for upskilling and employment that could support Japan’s maritime workforce. Structured training programs for Indian engineers and workers are being considered to further enhance technical capabilities and operational expertise.
A Window of Opportunity
As global shipping shifts toward cleaner and smarter technologies—including LNG, electric, and hybrid-powered ships—India is strategically positioned to emerge as a competitive, full-spectrum shipbuilding hub. With the right investments, policy support, and international collaboration, India and Japan could jointly develop a modern, sustainable, and globally competitive maritime ecosystem.
