Sanjidivan Sanal, a member of the Prime Minister of India's Economic Advisory Council, stated on September 24 that India, which currently builds less than one percent of the world's ships, could become the fourth largest shipbuilder in the next decade.
Factors for India's Success in Shipbuilding
Sanal said: "India has all the necessary materials for growth in this field, including its position as the second largest steel producer in the world, a large workforce, and ship design and construction capabilities." He added at the News18 DEFCON 2026 conference: "We can be recognized as a significant power in shipbuilding in the next 10 years."
Challenges in the Shipbuilding Industry
Sanal emphasized the existing challenges in this industry, stating: "More than 55 percent of all ships currently built in the world are made in China. Another 20 percent are made in South Korea and another 20 percent in Japan." He added that the rest of the world only builds 5 percent of global ships, and India currently builds less than 1 percent of that.
Meanwhile, India is heavily dependent on foreign ships. Sanal said: "Ninety-five percent of our trade by volume and 75 percent by value is conducted by ships, and mostly these ships are foreign." He pointed out that India has only about 480 ocean-going vessels, most of which are average, and this situation could pose serious problems for India in the event of sanctions.
Legal Changes and Investment in the Shipbuilding Industry
Sanal also referred to changes in India's maritime legal framework, stating that the laws related to this industry need to be updated. The Indian government has approved a package worth ₹69,725 crore to revitalize the country's shipbuilding and maritime industry by 2025. This package includes measures to support shipbuilding and grant infrastructure status to this industry.
He emphasized: "We have changed all laws related to transportation and maritime, and now we have modern laws that allow us to make heavy investments in shipbuilding." Sanal also called for creating opportunities for private companies in this industry, stating: "It doesn't just need money; it should be viewed as a priority."
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