The Government of India is planning to transform the Visakhapatnam Economic Region (VER) into a globally competitive port-proximate manufacturing hub, with shipbuilding, ship repair and maritime ancillary industries identified as key growth sectors under NITI Aayog’s Growth Hub initiative.
According to the Economic Master Plan for VER, the region has the potential to become a $125–135 billion economy by FY32, driven by strategic investments in ports, logistics, defence manufacturing, shipbuilding and industrial infrastructure.
The Visakhapatnam Economic Region benefits from Andhra Pradesh’s extensive 975-km coastline and a strong maritime ecosystem anchored by the ports of Visakhapatnam Port, Gangavaram Port, Krishnapatnam Port and Kakinada Port. Together, these ports serve as vital gateways for cargo movement and support major industries including steel, cement, fertilisers, seafood exports and energy logistics, fostering the development of industrial clusters across the region.
The push for maritime industrialisation is expected to receive a significant boost through the proposed ₹30,000-crore mega shipbuilding cluster in Andhra Pradesh. The project is likely to receive in-principle approval from the Centre in the near future as part of efforts to expand India’s shipbuilding capacity and increase the fleet size of India-flagged vessels.
“Shipbuilding and ship repair are among the emerging sectors of strategic importance in NITI Aayog’s plan to develop the Visakhapatnam Economic Region as a global economic hub,” said Saifuddin Hajee, Founder and Chairman of SHM Group.
Mumbai-based SHM Group, which has over a century of experience in maritime services, operates Directorate General of Shipping-approved service stations for life-saving and fire-fighting equipment in Visakhapatnam. The company is also engaged in shipbuilding, ship management, fleet operations, and the maintenance and supply of shipboard safety equipment in India and overseas markets.
Highlighting the broader maritime vision, Hajee noted that Andhra Pradesh’s port-led development strategy aligns closely with the government’s efforts to enhance port capacity, connectivity and coastal economic activity.
“Maritime India Vision 2030 commits ₹1.3 lakh crore to transform India into a top-five shipbuilding nation, aided by its 7,500-km coastline,” he said.
The development of VER is expected to strengthen India’s position in the global maritime economy while creating new opportunities in manufacturing, logistics, shipbuilding and allied industries along the country’s eastern seaboard.