India is significantly expanding its domestic shipbuilding capabilities through a mega-initiative that aims to establish eight shipbuilding and repair clusters along its coastline. This ambitious plan is a critical component of the nation's Atmanirbhar Bharat (self-reliant India) campaign, with the goal of transforming the country into a global shipbuilding powerhouse.
The project involves the development of eight locations with pre-secured land parcels and necessary statutory clearances. Five of these will be greenfield facilities, constructed from the ground up, while the remaining three will be brownfield projects involving the expansion and enhancement of existing facilities. The strategic placement of these clusters on both the east and west coasts of India will provide comprehensive coverage and accessibility.
The Indian government has already selected sites in Andhra Pradesh, Tamil Nadu, and Gujarat for the development of these major shipbuilding and repair centers. Thoothukudi in Tamil Nadu is likely to host one of the mega facilities, with an anticipated investment of approximately ₹10,000 crore. South Korean conglomerate HD Hyundai is reportedly in advanced discussions with Cochin Shipyard (CSL) to jointly manufacture large vessels for intercontinental trade under the "Make in India" initiative. While HD Hyundai stated that "nothing has been confirmed," sources suggest that an agreement is likely to materialize soon.
In addition to the Thoothukudi project, the government has earmarked two other land parcels for international partnerships. Companies from the Netherlands, France, and the Middle East have expressed interest in establishing shipbuilding operations in India.
To support this expansion, the Expenditure Finance Committee (EFC) is nearing the completion of appraisals for a revised shipbuilding financial assistance policy worth ₹18,090 crore. Furthermore, the Union Budget 2025–26 included the establishment of a ₹25,000 crore maritime development fund. These financial support mechanisms aim to incentivize the domestic manufacturing of large vessels, particularly those aligned with sustainable technologies such as green fuels and offshore wind farm installations. Direct capital investments are also planned to develop necessary port infrastructure, including breakwaters and dredging facilities at shipyards.
The Indian government aims to have two operational mega shipbuilding parks by 2030, with the goal of capturing a significant share of the $100 billion global market. These parks will be located on both the East and West coasts, with the government providing basic infrastructure and private players contributing critical equipment. This initiative is expected to enhance domestic shipbuilding capabilities and create employment opportunities.
The existing shipbuilding policy, initially launched in December 2015, is also being expanded. It offers incentives for contracts signed between April 2016 and March 2026 and focuses on vessels with green fuel capabilities and specialized marine applications, such as wind farm installation ships. These strategic moves are expected to reshape India into a major player in global maritime manufacturing and logistics.
