Shipbuilding is known as mother of heavy engineering as it enhances national security, strategic independence, and the resilience of trade and energy supply chains.
Current Status of Shipbuilding in India
- Shipbuilding industry accounts for less than 1% of the global shipping market.
- China has the biggest shipbuilding capacity in the world, followed by South Korea and Japan.
- Foreign ships carry 92% of India’s total trade and are paid $75 billion annually for it.
- Cochin Shipyard has India’s highest capacity in shipbuilding and repairing.
Challenges faced by Sector
- High capital costs: Due to expensive financing options available, making large investments risky and limiting shipyards’ ability to scale.
- Import dependence: Lack of indigenous availability of many advanced materials and components.
- Lower productivity: Compared with China, Indian shipyards are less productive, often due to outdated technology, longer build times, Supply chain limitations, etc.
Strengthening India’s shipbuilding sector is vital to transforming India into a global maritime and shipbuilding hub by 2047
Key Initiatives taken to promote Shipbuilding in India
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