India must increase its shipbuilding output nearly 11-fold to match the current production levels of Vietnam, the world’s fifth-largest shipbuilding nation, as it pursues a top-10 global ranking by 2030, according to a joint report by FICCI and EY.
Titled ‘Optimising India’s Shipbuilding and Ship Repair Capacity: Roadmap for Industrial Scale-up’, the report highlights that India accounted for just 0.075% of global merchant vessel deliveries in 2025, with domestic shipyards delivering 57,637 gross tonnes (GT) against global deliveries of 77.28 million GT. China, South Korea and Japan together contributed 94.2% of global output, while Vietnam’s production was more than 15 times India’s.
The report calls for an integrated approach to shipbuilding and ship repair through industrial clusters, backed by a 10-year vessel procurement pipeline, standardised vessel designs, long-term construction finance and refund guarantees. It also recommends linking financial incentives to firm orders, capacity utilisation, timely deliveries and domestic content.
While the ₹69,725-crore maritime package approved by the Union Cabinet provides a policy and financing framework, translating it into actual orders, productive shipyards and a competitive domestic supply chain remains a key challenge.
India has significant growth opportunities through fleet renewal, with 1,071 vessels aged 16 years or more as of December 2025. Coastal shipping, port services and inland waterways also offer demand potential, with cargo movement reaching a record 145.5 million tonnes in FY2024-25.
Ship repair is another major opportunity. Despite 7–9% of global maritime traffic passing within 300 nautical miles of India’s coastline, the country accounted for less than 1% of the global ship-repair market in 2024. India repaired 418 vessels in FY2023-24 across around 42 dry docks, with infrastructure gaps, turnaround times, spare availability and customs procedures constraining expansion.
The report identifies shipbuilding clusters as a key driver of capacity creation. The ₹9,930-crore Shipbuilding Development Scheme supports common infrastructure, while five greenfield clusters at Thoothukudi, Dugarajapatnam, Kuchhadi, Kendrapara and Dighi had received in-principle approval by August 2026.
India’s Maritime Amrit Kaal Vision 2047 targets a position among the world’s top 10 shipbuilding nations by 2030 and the top five by 2047. Achieving these ambitions will require converting policy support and potential demand into sustained industrial capacity and globally competitive shipbuilding and repair operations.