India Proposes 10-Year Demand Pipeline to Scale Shipbuilding Sector

India must consolidate its fragmented domestic vessel requirements into a predictable, 10-year demand pipeline to unlock financing and scale its maritime manufacturing base, according to a new report by EY and the Federation of Indian Chambers of Commerce and Industry (FICCI).

The report argues that the country’s current shipbuilding output—which stood at 57,637 Gross Tonnage (GT) in 2025—represents a mere 0.075% of global delivered tonnage. Despite a strategic location near major trade lanes, India’s share of the global ship-repair market also remains below 1%.

Aggregating Fragmented Demand

The central recommendation is the establishment of a national maritime demand and market assurance mechanism. This body would aggregate vessel requirements from public sector undertakings (PSUs), ports, coastal shipping operators, and inland waterway agencies into a structured, rolling 10-year procurement pipeline.

By providing long-term visibility, the mechanism aims to solve the chronic lack of bankability in the Indian maritime sector. Predictable order books are expected to give shipyards and financiers the confidence to invest in infrastructure and domestic supply chains, moving away from the lumpy and inconsistent demand that has historically characterized the industry.

Standardization and International Partnerships

A critical secondary benefit of this aggregated demand is the opportunity for vessel design standardization. The report suggests that regular, standardized procurement programs would improve shipyard productivity and make it more attractive for international partners to collaborate on high-end technologies such as propulsion, automation, and marine systems.

This shift toward standardization could address the current constraints in India’s ship-repair segment. While the country repaired 418 vessels in FY23-24, growth is currently hampered by slow turnaround times and poor availability of spares. A more standardized domestic fleet would naturally create a more robust local ecosystem for parts and technical expertise, addressing the service reliability issues that currently drive international tonnage elsewhere.

The report concludes that India’s ability to capture a larger share of the global market depends on creating commercially viable procurement programs and faster regulatory approvals. International partnerships that combine global technology with domestic manufacturing capacity are viewed as the primary path to strengthening India’s competitive position in the global maritime hierarchy.

Source: India Shipping News