Modi administration unveils a roadmap to transform the shipbuilding sector with plans for 1,000 new vessels in collaboration with South Korea
A high-level Indian delegation visited South Korea’s renowned shipyards, marking a pivotal moment in advancing bilateral cooperation in shipbuilding reported chosun.com.
The delegation, referred to as the “Indian Shipbuilding Delegation,” included key figures like R. Lakshmanan, Joint Secretary of India’s Ministry of Ports, Shipping, and Waterways; Shri Madhu Nair, CMD of Cochin Shipyard; and Binesh Kumar Tyagi, CMD of the Shipping Corporation of India (SCI). They were hosted by Cho Min-su, Vice President and Head of the shipbuilding division at HD Hyundai Heavy Industries (HD HHI).
This visit to HD HHI’s expansive facilities in Ulsan, South Korea, on December 3, is the first of its kind in almost a decade. It follows Indian Prime Minister Narendra Modi’s 2015 visit to South Korea, reinforcing the country’s interest in strengthening its maritime capabilities. The delegation toured docks capable of building 50 large vessels annually and explored the shipyard’s advanced eco-friendly technologies. An official emphasized India’s need for a diverse fleet of large commercial vessels to meet its growing maritime trade demands.
India plans to acquire 1,000 advanced commercial vessels with potential partnerships from South Korea’s leading shipyards
Central to the delegation’s mission was the goal of acquiring 1,000 commercial vessels, including containerships, LNG carriers, ULCCs, and car carriers. Their itinerary also included visits to other leading South Korean shipbuilders, Hanwha Ocean and Samsung Heavy Industries (SHI), completing an in-depth exploration of South Korea’s “Big Three” shipyards.
India’s shipbuilding ambitions align with South Korea’s dominance in high-value vessel construction, particularly in LNG carriers and eco-friendly dual-fuel technologies. As a global leader in shipbuilding, South Korea’s expertise offers an ideal partnership for India, which faces constraints in its domestic shipbuilding sector. Although India has 28 operational shipyards, most focus on small and medium-sized vessels and lack the capacity for large-scale commercial ships. With 95% of India’s trade volume reliant on sea transport, the urgency to enhance its fleet has become critical.
India spends approximately $75.4 billion annually on leasing foreign-owned ships, a figure expected to rise sharply with increased trade volumes. This economic pressure highlights the need for strategic investments in the domestic shipbuilding sector, a vision shared by the Modi administration.
South Korea’s shipbuilding industry, which emerged as a global powerhouse in the late 20th century, continues to excel despite competition from China and Japan. Its focus on specialized, high-value ships, robust industrial hubs like Ulsan and Geoje, and technological innovation have solidified its competitive edge. LNG carriers, considered the gold standard, have gained prominence amid global energy security concerns exacerbated by the Russia-Ukraine conflict.
This landmark visit underscores India’s resolve to collaborate with South Korea to revolutionize its maritime infrastructure. The delegation’s efforts symbolize a step forward in achieving a self-reliant and modernized shipbuilding sector, laying the foundation for a thriving maritime future.
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