India is preparing to launch a series of mission-mode measures to transform itself into a global shipbuilding and maritime services hub, according to a Mint report citing two people familiar with the government’s plans.

The initiative, aimed at building a full-service maritime ecosystem, will include a maritime development fund, revamped shipbuilding assistance schemes, and policies to bolster domestic capabilities across shipbuilding, repairs, financing, insurance, technical staffing, and dispute resolution.

“The idea is to plug every critical gap in the value chain so that India is not just building ships, but also financing, insuring, managing, and resolving disputes,” one of the individuals told Mint.

Currently, China, South Korea, and Japan dominate over 90 percent of global shipbuilding, with China alone accounting for nearly half of all new orders. India, with less than 1% share, is now targeting a spot in the global top 10 by 2030 and top five by 2047, the report said.

To bridge the gap, India is courting Japanese and Korean shipbuilders and financiers to form joint ventures (JVs) and replicate their home-country shipping finance models in India. Cochin Shipyard is reportedly exploring a partnership with Korean firms for shipbuilding in Kerala, Mint reported.

In addition to shipbuilding, complementary missions will address ship repair, recycling, cruise infrastructure, maritime arbitration, and staffing. New ship repair hubs are being planned in Kochi, Mumbai, Chennai, Kolkata, and Vadinar, along with a free trade depot for duty-free imports and a maritime arbitration centre, the Indian International Maritime Dispute Resolution Centre (IIMDRC).

A Rs 25,000 crore maritime development fund is in the works to boost private investment via blended finance, while a dedicated domestic maritime insurance entity, the India Club, is under consideration to provide P&I cover for coastal and inland shipping.

Private players are also stepping in. Garden Reach Shipbuilders & Engineers has signed MoUs with Germany’s Carsten Rehder and UAE’s Aries Marine, while L&T is collaborating with Norway’s DNV on shipbuilding and port infrastructure.

“The recent developments are part of a larger push under India’s new shipbuilding mission,” a person told Mint. “We are not just building ships; we are building the entire ecosystem.”

Pushpank Kaushik of Jassper Shipping told Mint that a clear policy push for foreign investment and tech transfer will be key to closing the gap with global leaders and putting India firmly on the global shipbuilding map.
Source: Moneycontrol