The India Ministry of Ports, Shipping and Waterways posted this image on its X (formerly Twitter) feed to illustrate the country's Maritime India Vision 2030 as it steers confidently towards Maritime Amrit Kaal Vision 2047, envisioning India as a dominant blue economy leader. (@shipmin_india on X)
India is preparing for international partnerships to strengthen its shipbuilding industry. Related to this, Union Minister Sarbananda Sonowal held bilateral talks with Japan's Vice Minister Yoshimichi Terada in Oslo, Norway, early in 2025.
They met on the sidelines of the 60th Nor-Shipping event for discussions covering multiple areas, including increasing cooperation in shipbuilding, ports, smart islands, and maritime training. All of their discussions were aimed at a globally sustainable future.
The talks also included Japanese shipyard investments. Among their topics were collaboration on port digitization and green port initiatives, boosting R&D cooperation, upskilling human resources, and employing Indian seafarers in Japan. All of this aligns with India's strategic goal of establishing itself as a major player in international shipbuilding.
This article examines a potential partnership deal between Indian and Japanese shipyards.
What is the New Proposition?
There is an ongoing effort to increase partnerships between Indian and Japanese shipyards. A greenfield investment like Imabari Shipbuilding in Andhra Pradesh exemplifies these warming ties. In February, Imabari's President Yukito Higaki led a high-level delegation to meet Andhra Pradesh Chief Minister N Chandrababu Naidu. The two sides discussed potential investments in the shipbuilding industry.
Additionally, in 2024, Andhra Pradesh finalized a maritime policy that offers incentives for establishing yard infrastructure. The state has adopted a cluster-based approach, zoning land in specific port areas for shipbuilding and ship repair companies. Land leases may be long-term (30-60 years) at a nominal rate.
More broadly, India has expressed interest in partnering with Japanese shipbuilding firms. It has approached Imabari Shipbuilding, JMUC, Kanagawa Dockyard, and Mitsubishi Heavy Industries to explore joint ventures and collaborations with Indian yards. Japan's top three maritime companies — NYK Line, MOL, and K Line — have also been invited to seek joint ventures and investment opportunities in India's growing maritime sector.
Opportunities for co-developing ports and maritime industrial clusters as clean energy hubs have also been explored for mutual benefit. These include collaboration on port digitization and green port initiatives aimed at strengthening the resilience and sustainability of joint maritime logistics networks.
Seizing the Japanese Opportunity
Japan has expertise in shipbuilding, ship repair, and the construction of state-of-the-art vessels. Moreover, it is well recognized worldwide. There are opportunities for collaboration in this area with expanding prospects across the entire value chain — from ship design and yard modernization to recycling infrastructure, component manufacturing, and green shipping technologies.
These segments present high-potential entry points for both domestic and international investors seeking to capitalize on India's competitive cost structure, resource availability, and policy-driven growth. India's increasing shipyard capabilities hold great promise.
Japan held a 15% share of the global market in 2023 and remains a dominant player in the industry. Together, China, Japan, and South Korea control 85% of the global market. Japan is known for quality, automation, advanced materials, economies of scale, government subsidies, and technological leadership.
Meanwhile, India ranks 20th in global shipbuilding, with just 0.06% of the market share. It aims for ¥5 trillion JPY (₹3.2 lakh crore or $34 billion USD) in investments with Japan by 2027. This opens up significant opportunities for collaboration. Both countries seek to develop a competitive, future-ready shipbuilding industry that can serve regional and global markets. For India, the shipbuilding sector is positioned to significantly boost the economy and help the country emerge as a major maritime power on the world stage.
India at the Sweet Spot
Strategically, India is geographically positioned to take on a leading role in maritime trade and manufacturing. It has over 11,000 kilometers of coastline and a vital position along key global shipping routes.
Nearly 95% of India's EXIM trade by volume already moves by sea, highlighting the sector's crucial importance to the economy. The country has over 40 shipyards producing everything from navy vessels to offshore ships. However, currently, India ranks just above 16th in the world in shipbuilding capacity. This indicates that it has significant room for growth and improvement.
Currently, exports are expected to reach $2 trillion by 2030. Strengthening domestic shipbuilding would decrease outside reliance, keeping value within the country, and generating jobs. Additionally, as East Asian shipyards become more congested, India could emerge as a viable alternative for global buyers. This applies not only to medium-sized and specialized vessels, but across a wide range of ship types.
As the global shipping industry shifts toward cleaner and smarter technologies, this is a crucial moment for India to reach out and partner with trusted allies such as Japan. It capitalizes on both India's geographic advantages and its large workforce to develop a modern, competitive shipbuilding industry. The greener maritime technologies — such as LNG, electric, and hybrid-powered ships — offer an opportunity to create cutting-edge vessels from the ground up. With the right investments and policy support, India can position itself as a competitive, full-spectrum shipbuilding hub on the global stage.
Regarding upskilling and employment of human capital, India currently has over 154,000 trained seafarers. They offer a significant opportunity in training, upskilling, and employment to support and enhance Japan's maritime workforce. Moreover, India is eager to aid Japanese maritime companies in training Indian engineers and workers through structured programs.
Maritime India's Vision
India seeks Japan's participation in these transformative initiatives. It aims to strengthen collaboration in the maritime sector, especially on sustainable maritime technologies and next-generation ship design. For this purpose, India has shown interest in an MoU for a framework to explore promising avenues for cooperation with Cochin Shipyard Limited (CSL), Indian universities, and public agencies.
Furthermore, the ministry has a clear vision for the phased development of shipbuilding clusters in the country. It expects two to three clusters will be developed and operational within the next 10 years, followed by an additional one to two clusters within the following five years.
India's government has also introduced several policies, including granting shipyards infrastructure status. This facilitates securing long-term loans. Customs duty exemptions lower the costs of key materials. Additionally, a Maritime Development Fund has been established, offering $2.9 billion in affordable long-term financing for shipbuilding projects.
Boosting the Shipbuilding Industry
The government is also planning to launch its Shipbuilding Financial Assistance Policy 2.0. Under this, the government could provide an estimated $2 billion in industry support, with a strong focus on eco-friendly and high-tech vessels.
Under the plan, shipbuilding clusters in maritime states would be developed. Sites would be identified based on their port connectivity, local manufacturing ecosystems, and overall industrial readiness. These clusters would also feature shared testing labs, design centers, and production facilities to enhance economies of scale and foster collaboration among shipyards.
The government has formulated its "Maritime India Vision 2030" and "Maritime Amrit Kaal Vision 2047." Within that framework, India is moving forward to transform its maritime sector through port infrastructure, green shipping, shipbuilding, and digitalization. However, to build capacity, Japan's extensive maritime knowledge and strengthening the partnership are key.
Challenges on the Way
India's shipbuilding industry needs a complete ecosystem. This includes finance, infrastructure, skilled workers, and a strong supply chain. Furthermore, it requires facilitating land aggregation, ensuring the availability of adequate waterfront, fast-tracking clearances and approvals to reduce bureaucratic delays, and providing subsidies, tax breaks, or other fiscal benefits. Bridging investment gaps by developing shared maritime assets such as dry docks, testing ranges, and R&D centers, which can be used across the industry, is the new proposition.
Many government-run shipyards primarily focus on defense contracts and lack the capacity for commercial ships. Private shipyards often miss out on advanced technologies such as robotic welding and digital design tools. India also imports many essential materials, such as marine-grade steel and navigation equipment. This increases costs and causes delays. Finally, shipyards without shared infrastructure often operate in isolation. That means they miss opportunities for cost savings and collaboration.
Conclusion
Despite being a maritime nation with abundant resources and skilled labor, India has yet to realize its full potential in this sector. The shipbuilding industry is at a critical juncture and must be shaped by technological advancements, sustainability goals, and strategic adjustments. Through targeted reforms, investment, and international cooperation, India can aim not only to meet its own naval and commercial needs but also to become a competitive player in the global shipbuilding market.
Meanwhile, India enjoys a strong bilateral relationship with Japan, and its growing maritime industry offers a unique opportunity for Japanese shipyards to invest in India's shipbuilding sector. Close collaboration with Japan toward a sustainable future, guided by a shared vision of advanced maritime cooperation, benefits both countries and contributes to global progress.
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Author: Varuna Shankar
