India can accelerate the development of its shipbuilding and ship repair industry by establishing a 10-year ship supply line. This point is clearly stated in a report from the consulting firm EY and the FICCI Chamber of Commerce. The report titled "Optimizing Shipbuilding and Repair Capacity in India: A Roadmap for Industrial Development" has been published.
Key Recommendations of the Report
The report proposes the establishment of a national maritime demand mechanism and market guarantee that can structure the needs of state-owned enterprises, ports, coastal transport operators, and other major ship users within a 10-year ship supply line. This approach can help create a long-term demand outlook and contribute to increasing shipbuilding productivity and access to investment and financing.
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According to the report, India is set to deliver ships with a total gross tonnage (GT) of 57,637 tons to the market by 2025, representing approximately 0.075 percent of global production. Although this figure has improved compared to 2024, the long-term trend remains unstable.
Fleet Renewal Opportunities
Domestic demand can provide the necessary outlook for orders. By December 2025, 1,071 ships in the Indian fleet will be either over 20 years old or between 16 to 20 years old. This presents a significant opportunity for fleet renewal and also encompasses demand from coastal transport services, inland waterways, port services, and specific categories of commercial ships.
The recommendations of this report include strengthening maritime financing through long-term construction financing, supporting working capital and repayment guarantees, and deepening the domestic supply chain by developing capabilities in key marine equipment.
Development of Integrated Maritime Clusters
The report also highlights the need for simultaneous scalability in shipbuilding and ship repair to optimize the use of infrastructure, skills, and supplier networks. Developing integrated maritime clusters around key shipbuilding and repair locations will enhance access to suppliers, logistics, skills, and supporting infrastructure.
India's geographical position offers significant opportunities for expanding ship repair capabilities. Approximately 7 to 9 percent of global maritime traffic passes within 300 miles of India's shores, and the country's current share of the global ship repair market indicates capacity for further growth.
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