India, the world’s largest importer of crude oil, natural gas, coal, and fertilisers, continues to rely overwhelmingly on foreign vessels to transport its cargo — a dependence industry leaders warn could have far-reaching economic consequences.
According to government estimates, India’s shipping requirement touched $85 billion last year, with nearly 85 per cent of all cargo carried by foreign ships. This heavy reliance leaves the country vulnerable to global supply chain shocks, cautions Cochin Shipyard Ltd Chairman and Managing Director, Madhu S Nair.
Nair emphasises that any disruption in global shipping routes or freight markets could create immediate ripples across the Indian economy, affecting energy security, commodity availability, and industrial output. “A strong and self-reliant shipping ecosystem is essential to support India’s rising maritime needs,” he said.
Shipping, he noted, has a “cascading impact” on the broader economy. A well-developed shipping and maritime framework fuels multiple sectors — from manufacturing to logistics and international trade. A comprehensive expansion of shipbuilding capability would enable India to not only meet domestic demand but also penetrate global markets with a diverse range of products.
With India emerging as one of the fastest-growing trading nations, a vibrant maritime and shipbuilding ecosystem is gradually taking shape. This includes expansions at major ports, the rise of private shipyards, and increased participation from global shipping and logistics players. Ship manufacturing, Nair added, is a “powerful labour multiplier” capable of stimulating broad-based economic activity.
To accelerate this momentum, the central government has rolled out a series of targeted measures to bolster the domestic shipping industry. Chief among them is the recently announced ₹70,000-crore support package for the shipbuilding and maritime sector — the largest of its kind. The initiative aims to position India among the world’s top 10 shipbuilding nations by 2030, with an ambitious goal of breaking into the top five by 2047.
Industry experts view this as a pivotal moment. With rising geopolitical uncertainty and global trade realignments, strengthening domestic shipping capabilities is no longer just an economic consideration but a strategic imperative for India.