Revitalizing the Indian Shipbuilding Industry: A Workshop by MoPSW
The Ministry of Ports, Shipping, and Waterways (MoPSW) recently held a critical workshop on reviving the Indian shipbuilding industry. The event, chaired by MoPSW Secretary Shri TK Ramachandran, brought together key players including government representatives, shipping companies, and public and private shipyards.
A Call for Self-Reliance in Shipbuilding
The workshop aimed to revitalize the shipbuilding and repair ecosystem in India, aligning it with the ambitious goals of Maritime India Vision 2030 (MIV 2030) and Amrit Kaal Vision 2047. These initiatives emphasize Atmanirbhar Bharat, or self-reliance, which extends to the shipping and shipbuilding sectors.
The Challenge: Dependence on Foreign Vessels
Despite advancements in port infrastructure and inland waterways, India currently relies heavily on foreign vessels for cargo transportation. Indian-owned ships only carry a meager 5.4% of the country’s cargo. This dependence has significant drawbacks:
- Vulnerability in Crisis: A lack of a domestic fleet could limit access to ships during emergencies.
- Foreign Exchange Drain: Chartering foreign ships costs India valuable foreign reserves.
- Missed Economic Opportunities: The Indian shipbuilding industry is missing out on a massive potential market – estimated at over $237 billion by 2047.
A Collaborative Approach to Growth
The workshop brought together stakeholders from both the supply (shipbuilders) and demand (shipping companies) sides. Discussions focused on:
- Identifying limitations of Indian shipyards
- Exploring necessary incentives for both supply and demand
- Determining how MoPSW can facilitate growth
The Ministry will consider the insights from these discussions in its 100-day plan to develop and support the shipbuilding ecosystem. The ultimate goal is to achieve the ambitious targets set by MIV 2030 (top 10 in shipbuilding by 2030) and Amrit Kaal Vision 2047 (top 5 by 2047).
Past Initiatives and Future Directions
MoPSW has previously implemented measures to support shipbuilding, such as financial assistance policies, priority rights for domestic shipyards (Right of First Refusal), and infrastructure status for shipyards. However, these haven’t been enough to propel India to a leading position. The Ministry is now exploring ways to strengthen domestic demand for Indian-built ships.
Leading the Way in Green Shipbuilding
Indian shipbuilding companies have shown promise in developing low-emission and zero-emission vessels. MoPSW is fostering an integrated approach by creating Maritime Clusters to connect various stakeholders in the industry.
Vision for the Future: Maritime Powerhouse India
MIV 2030 and Amrit Kaal Vision 2047 set ambitious goals for India’s maritime sector:
- Top 10 (MIV 2030) and top 5 (Amrit Kaal Vision 2047) in global shipbuilding ranking
- Handling 1300 Million Metric Tons Per Annum (MMTPA) of coastal cargo
To achieve these targets, MoPSW is committed to:
- Building globally competitive capabilities
- Adopting best practices and technologies
- Promoting sustainability and green initiatives
- Expanding shipbuilding capacity
This workshop signifies the government’s dedication to transforming India into a dominant force in the global maritime landscape. It’s a crucial step towards achieving self-reliance and propelling India’s maritime sector to new heights.
In the past, MoPSW has endeavored to aid the growth of shipbuilding and ship repair industry through schemes such as the Shipbuilding Financial Assistant Policy, Right of First Refusal (ROFR) policy, according Infrastructure status to shipyards, etc. Despite these measures, commercial shipbuilding in India, has still not reached a position of strength compared to global shipbuilding majors, accounting for less than 1% of the global shipbuilding market, largely on account of lack of demand. Consequently, MoPSW is examining the policy measures to strengthen demand creation domestically given our requirement to strengthen our domestic fleets.
Notable advancements made in the development of indigenous low-emission or zero-emission ships/vessels by Indian shipbuilding companies showcase our potential to lead the world in safe sustainable and green shipbuilding. MoPSW is working on an integrated approach to bringing together shipbuilding stakeholders through the development of Maritime Clusters.
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