Shipbuilding Boost: India Needs 10-Year Demand Pipeline to Sail Ahead
A new EY-FICCI report reveals India's tiny share in global shipbuilding and suggests a 10-year procurement pipeline to boost the industry.
India is sitting on a goldmine of strategic maritime opportunities, yet it is barely scratching the surface of the global shipbuilding and repair market. According to a comprehensive report released by EY and the Federation of Indian Chambers of Commerce and Industry (FICCI), the country urgently requires a predictable, long-term demand pipeline and improved financing options to transform its maritime industry into a global powerhouse.
The Stark Reality: A Tiny Global Footprint
Despite its prime location along major international shipping lanes, India's presence in the global maritime construction scene is surprisingly minimal. The report reveals a sobering statistic: India accounted for approximately 0.075% of global delivered shipbuilding Gross Tonnage (GT) in 2025.
The ship-repair sector tells a similar story of untapped potential. In 2024, India's share of the global ship-repair market remained below 1%. While the country possesses around 42 dry docks and managed to repair 418 vessels in FY23-24—with 227 of those handled by private-sector shipyards—the scale is far from where it needs to be.
Fluctuating Output and Lack of Sustained Growth
The commercial shipbuilding output in India has been characterized by inconsistency. The industry hit a peak of 72,137 GT in 2021, but this figure dipped to 57,637 GT by 2025. The EY-FICCI report emphasizes that these fluctuations indicate a lack of a "sustained growth trend," suggesting that sporadic orders are not enough to build a stable industrial ecosystem.
The Blueprint for a Maritime Revolution
To move from marginality to leadership, the report suggests a fundamental shift in how vessel procurement is handled. The core recommendation is the establishment of a national maritime demand and market assurance mechanism.
This mechanism would synchronize the vessel requirements of various stakeholders, including:
- Public Sector Undertakings (PSUs)
- Major ports
- Coastal shipping operators
- Inland-waterway agencies
- Other large-scale maritime users
By creating a structured, rolling 10-year procurement pipeline, the government can provide domestic shipyards with the visibility they need to plan long-term investments and scale their operations.
Breaking the Barriers: Financing and Standardization
The report identifies that the lack of standardized vessel designs and irregular procurement cycles hinder productivity. By standardizing designs and introducing regular procurement programmes, India can:
- Boost shipyard productivity.
- Encourage more investment in the domestic supply chain.
- Make it easier for shipyards to access competitive financing.
The demand base is already there—fleet renewals, the expansion of coastal shipping, and the development of inland waterways provide a ready market. The challenge lies in converting this need into a reliable stream of orders.
Global Partnerships and the Repair Opportunity
India cannot sail this ship alone. The report stresses that international cooperation is key to accelerating capabilities in critical areas such as:
Vessel design, production engineering, propulsion, automation, marine systems, supplier qualification, and lifecycle support.
By blending international technology and market access with domestic manufacturing strength, India can strengthen its global standing. The report notes that growth will ultimately depend on commercially viable procurement, faster regulatory approvals, and timely project delivery.
The Ship-Repair Goldmine
India's geography is its greatest asset. Being located near the world's busiest shipping routes offers a massive opportunity to attract international ship-repair business. However, the report warns that this potential is currently being throttled by:
- Inadequate repair infrastructure.
- Slow turnaround times.
- Poor availability of spare parts.
- Inconsistent service reliability.
Addressing these bottlenecks could allow India to capture a significantly larger slice of the global ship-repair pie, turning its strategic location into a tangible economic advantage.