NEW DELHI: India’s ambition to become one of the world’s top five shipbuilding nations by 2047 is driving a search for global expertise, with South Korean companies emerging as key partners. New Delhi is courting Korean shipbuilding giants for investment, technology partnerships, shipyard development and workforce training as it looks to rapidly expand domestic capacity.
Mint explains why South Korea has become a key pillar of India’s shipbuilding strategy and whether the partnership can help deliver its 2047 ambitions.
Why is India focusing on shipbuilding now?
India’s push into shipbuilding reflects strategic, economic and geopolitical priorities.
Despite a coastline of over 7,500 km and its status as a major trading nation, India accounts for less than 1% of global output. China, South Korea and Japan together control more than 85%.
Expanding the domestic fleet is a priority, as reliance on foreign vessels exposes India to freight volatility and supply-chain shocks. The sector is also expected to generate jobs across steel, heavy engineering, electronics and logistics.
Why is South Korea important to India’s plans?
South Korean shipbuilders bring scale, technology and execution capabilities that India lacks. HD Hyundai, Hanwha Ocean and Samsung Heavy Industries are among the world’s most advanced, with leadership in LNG carriers, VLCCs, container ships and naval platforms.
Indian yards, by contrast, focus largely on smaller vessels, offshore structures and defence contracts.
“Koreans are known for their shipbuilding skills,” said Anil Devli, chief executive officer of the Indian National Shipowners’ Association, adding that HD Korea Shipbuilding and Offshore Engineering investments would bring critical design and construction capabilities India needs.
The government sees these partnerships as a way to accelerate technology transfer and shorten the learning curve.
Korean yards also offer efficient operations, modular construction and integrated supply chains—areas where Indian yards lag.
What projects are being discussed?
India is engaging Korean firms for both investment and technology partnerships.
A major proposal involves HD Korea Shipbuilding and Offshore Engineering setting up a greenfield shipyard in the Thoothukudi cluster with an estimated investment of about ₹40,000 crore. The facility would build large vessels, including VLCCs and VLGCs, segments where India has limited capacity.
Another proposal involves a Cochin Shipyard Ltd. (CSL)–HD Hyundai partnership for a facility near CSL’s Kerala plant.
Beyond new yards, discussions include modernizing existing shipyards, training workers, local manufacturing of marine equipment, technology sharing and participation in maritime clusters.
According to Vivek Merchant, director at Swan Defence and Heavy Industries Ltd (SDHI), the partnership marks a shift “from transactional procurement to a shared industrial destiny”, aligning Korean expertise with India’s Maritime Amrit Kaal 2047 vision.
He said proposed Korean industrial townships could help localize supply chains and reduce import dependence. SDHI is also exploring a tie-up with South Korea’s Samsung Heavy Industries to build complex vessels at its Pipavav yard in Gujarat.
India is also exploring ship repair and maintenance partnerships as Indian Ocean traffic grows.
Why can’t India build the industry on its own?
India has experience, but scaling requires deep capital, advanced technology and industrial ecosystems.
Shipbuilding needs deep-draft ports, heavy engineering infrastructure, automated fabrication and skilled labour.
Leading nations built these capabilities over decades through state support, export financing and clustering.
Indian yards face long delivery timelines, high financing costs, limited design access, fragmented supply chains and lower productivity than East Asian peers.
Korean participation helps address these gaps by bringing proven systems and operational expertise.
Merchant also highlighted the transfer of Korean precision engineering and modular construction techniques as critical for building human capital.
The approach mirrors India’s strategy in electronics and semiconductors, where foreign partnerships are being used to build domestic capability.
What does South Korea gain?
For Korean firms, India offers a large long-term market and a potential manufacturing base.
Global ship demand is expected to remain strong, driven by energy transition, fleet replacement and trade growth. But Korean yards face rising costs and capacity constraints.
India offers lower labour costs, a large engineering workforce and expanding port infrastructure, along with access to future demand in the Indian Ocean and Middle East.
Closer ties also align with Asia’s broader shift to diversify away from dependence on Chinese manufacturing ecosystems.
Government incentives for shipbuilding clusters, infrastructure and financing are further improving investment appeal.
Can India become a top-five shipbuilding nation?
The target is ambitious but achievable over two decades with sustained policy support.
India’s advantages include a large workforce, strong steel base, rising trade demand and strategic location.
But progress requires more than large investments. India must improve financing for ship buyers, speed approvals, expand export incentives, develop skills, deepen ancillary industries and upgrade logistics around clusters.
Measures such as the ₹25,000 crore Maritime Development Fund and new shipbuilding schemes are steps in that direction. Infrastructure status for shipping and shipbuilding has also improved access to financing.
Korean partnerships are seen as a catalyst, not a solution.
Merchant said aligning Korean capital with India’s maritime financing ecosystem could help de-risk investment and support the broader “Make in India” push.
If successful, India could move from small and medium vessels into high-value commercial ships and specialised carriers over the next decade.