Shipbuilding Industry: Past, Present, and Future

Introduction: From Shipwreck to Shipbuilding Superpower?

What do you call a country that went from a $90 million shipbuilding market in 2022 to $1.12 billion in 2024?
Answer: India — and no, that’s not a typo.

For decades, the Indian shipbuilding industry drifted without direction. It mostly built naval ships and got little global attention. But suddenly, things are changing.

Now, it’s aiming for $8.12 billion by 2033, backed by a massive 60% CAGR. And if that’s not ambitious enough, there’s a long-term vision for $62 billion by 2047 in commercial shipbuilding alone.

Yet today, India holds just 0.05% of the global market and ranks 20th, way behind China, South Korea, and Japan. Still, this feels like the start of a classic underdog story. Shipyards are waking up. Private players are investing. And the government is pushing hard with incentives.

In this blog, we’ll sail through India’s shipbuilding journey — from history to policy moves, and from hidden champions to listed stocks that could benefit.

History & Evolution of Indian Shipbuilding

India’s shipbuilding legacy goes way back — we’re talking Indus Valley Civilization old. Lothal, a port city in Gujarat, had dry docks as early as 2400 BCE, proving that maritime trade was already a big deal.

Fast forward to the British era, and shipbuilding moved from ancient harbors to structured dockyards. The Wadia Group famously built the HMS Trincomalee in the 19th century — one of the oldest warships still afloat today. But post-Independence, shipbuilding didn’t quite cruise; it crawled.

After 1947, India focused mainly on naval defence. Public sector units like Mazagon Dock Shipbuilders, Cochin Shipyard, and Garden Reach Shipbuilders were set up to build warships and patrol vessels. Private sector participation was almost zero. Commercial shipbuilding? Barely on the radar.

By the early 2000s, global orders started trickling in. Companies like ABG Shipyard and Bharati Shipyard tried to ride the wave but couldn’t survive the financial storms. Eventually, many shut shop.

So, for a long time, India was a country with shipyards — but no shipbuilding vision.

That’s what makes this recent growth surge so exciting. It’s not just a cycle. It looks like a course correction.

Indian Shipbuilding Industry: Current Trends, and Targets

Let’s get the big number out of the way first: India’s shipbuilding industry exploded from $90 million in 2022 to $1.12 billion in 2024. That’s not growth — that’s ignition.

And this rocket isn’t slowing down. The market is projected to reach $8.12 billion by 2033, riding a 60% CAGR — one of the fastest in the world.

But here’s the catch: Despite all this hype, India still holds just 0.05% of the global commercial shipbuilding pie. That places us 20th globally, while China, South Korea, and Japan dominate the top spots. In fact, the global market is currently valued at $146 billion and is set to touch $195 billion by 2030.

The Output Gap

India’s shipyards produce only 0.072 million GT (gross tonnage) annually. To become a serious contender, that number needs to jump to 0.33 million GT — over 4.5x growth.

And here’s where it gets interesting.

The Government’s Moonshot Vision

• $237 billion opportunity: According to the Ministry of Ports, if India focuses hard on its domestic shipping demand, shipyards could tap into a $237 billion (₹20 lakh crore) market by 2047.
• The commercial shipbuilding market alone could hit $62 billion by then.
• To fuel this growth, the Union Budget 2025-26 launched a ₹25,000 crore Maritime Development Fund. This fund pools 49% government funding and 51% from ports and private investors to provide long-term investments in the sector. India Target bolstering shipbuilding and ship recycling targets by 2030 with Marine Development fund of ₹30,000 crore.

These aren’t just projections. They’re part of India’s maritime masterplan. The government is eyeing Make in India ships for everything — from inland cargo carriers to ocean-going tankers.

Why India Is Finally Catching Wind

For years, India’s shipbuilding industry moved slowly. But now, it’s accelerating fast. Here’s why:

1. Government Push and Policy Boosts

The Union Budget 2025-26 introduced a Rs 25,000-crore Maritime Development Fund, with 49% government contribution and 51% from ports and private sectors. This fund aims to provide long-term investments to modernize shipyards and boost capacity. Along with tax incentives and subsidies, the government is serious about turning the tide.

2. Rising Domestic Shipping Demand

India’s coastal shipping market is growing rapidly, with the government targeting a rise in annual ship output from 0.072 million GT to 0.33 million GT to meet domestic needs. The Ministry of Ports estimates the potential shipbuilding market in India at $237 billion (Rs 20 trillion) by 2047 if domestic demand is fully tapped.

3. Technological Upgrades and Skilled Workforce

Many Indian shipyards have adopted advanced technologies, leading to the industry’s valuation skyrocketing from $90 million in 2022 to $1.12 billion in 2024, showing rapid modernization and growth. A skilled workforce and better infrastructure have helped achieve this sharp rise.

4. Strategic Location and Geopolitical Shifts

Currently holding just 0.05% share in the global commercial shipbuilding market (ranking 20th), India’s strategic location on vital sea lanes makes it an attractive alternative amid global supply chain disruptions and geopolitical tensions. This factor is helping India gain more attention from global players.

5. Sagarmala & Maritime India Vision 2030

Remember Sagarmala? That 2015 initiative to modernize India’s port infrastructure? It’s back in the spotlight. Under Sagarmala and the Maritime India Vision 2030, the government plans:

• Modernizing 7 major shipyards
• Setting up 5 new ship repair facilities
• Increasing shipbuilding capacity 5x by 2030
• Developing green and autonomous ship capabilities

6. Local Order Boosts

The Ministry of Ports has also hinted at mandating Indian-built ships for PSU cargo transport, which could open up a steady domestic order pipeline. Combine that with incentives for inland waterway vessels, and you’ve got tailwinds forming

India vs Global Giants: Still a Long Voyage Ahead

Let’s be honest — India may be finally catching wind, but it’s still just a speck in the global shipbuilding ocean.

In 2024, the global shipbuilding market stood at a massive $146 billion. India’s contribution? A humble $1.12 billion — barely 0.05% of the global pie. Meanwhile, the top 3 shipbuilding countries — China, South Korea, and Japan — continue to dominate the waves.

Country	Market Share (%)	2024 Market Size (USD)	Projected 2030 Market Size (USD)
China	~45%	$65.7 billion	$87.7 billion
South Korea	~30%	$43.8 billion	$58.5 billion
Japan	~15%	$21.9 billion	$29.2 billion
India	0.05%	$1.12 billion	Projected $8.12 billion by 2033

China alone builds more than 900 ships a year, while India is trying to increase its capacity to just 0.33 million gross tonnage per year (from 0.072 GT now). That’s like comparing a cruise liner to a paddle boat.

The gap isn’t just in numbers — it’s in infrastructure, R&D, global order books, and ecosystem support. But… the good news? India knows this and is gearing up with long-term vision.

The government aims to tap into a $237 billion market opportunity by 2047, primarily by capturing domestic shipping demand and slowly stepping into global waters.

Meet India’s Shipbuilding Champions

India may not be a global heavyweight yet, but it’s got a few strong players ready to sail into deeper waters. Let’s meet the major shipbuilders charting India’s maritime future:

1. Cochin Shipyard Ltd (CSL) – The Flagbearer

• Owned by: Government of India
• Notable Builds: India’s first Indigenous Aircraft Carrier – INS Vikrant
• Capacity: ~110,000 DWT
• Facilities: Kochi, Mumbai, Kolkata, and Port Blair

CSL has been India’s most consistent performer — delivering defence, commercial, and offshore vessels. It’s also executing major export orders and cruise vessel refits for Europe.

💡 Stock angle: Listed on NSE and BSE, CSL has delivered strong order inflows and margin expansion. It’s riding the tailwinds of defence and commercial demand.

2. Mazagon Dock Shipbuilders (MDL) – Defence Powerhouse

• Focus: Primarily naval warships and submarines
• Famous for: Scorpene-class submarines, Destroyers
• Location: Mumbai

Although more defence-focused, MDL’s infrastructure and talent make it a strong potential contender if commercial demand picks up. It’s also pursuing exports.

💡 Stock angle: MDL has seen explosive re-rating due to defence push. Its capacity ramp-up plans could serve dual-use purposes.

3. Garden Reach Shipbuilders (GRSE) – Kolkata’s Silent Performer

• Focus: Small-to-mid-sized defence and commercial vessels
• Exports: Ships to Mauritius, Seychelles, and Sri Lanka

GRSE has quietly expanded into patrol vessels and ferries, especially for export. The government’s push for inland waterway development could benefit GRSE in a big way.

4. L&T Shipbuilding – The Private Muscle

• Facility: Kattupalli (near Chennai)
• Strengths: Modular shipbuilding, fast turnaround, commercial vessels

L&T brings in capital efficiency and technology. Its private yard is equipped with advanced automation and can build both defence and commercial ships.

5. Goa Shipyard & Hindustan Shipyard – Regional Enforcers

These state-owned shipyards play key roles in defence contracts and smaller vessel construction but lack scale for large commercial builds.

Together, these shipbuilders are finally seeing policy, capital, and opportunity come together. But how do their financials and capacity stack up?

How They Stack Up: Financials & Capacity

India’s top shipbuilders are no longer just building for patriotism — they’re minting serious money. Let’s break down how the key players are performing on the financial front and what kind of firepower they actually hold.

Company	Revenue (₹ Cr)	Order Book (₹ Cr)	Capacity (DWT/GT)	Listed?
Cochin Shipyard (CSL)	~₹ 4,528 Cr.	~₹22,500 Cr	~300,000 DWT	✅ Yes
Mazagon Dock (MDL)	~₹11,432 Cr	~₹34,787 Cr	~40,000 DWT (Defence)	✅ Yes
Garden Reach (GRSE)	~₹5,076 Cr	~₹22,680 Cr	~26,000 DWT	✅ Yes
L&T Shipbuilding (Private)	~₹1,200 Cr*	~₹5,000 Cr*	~30,000 DWT	❌ No
Goa & Hindustan Shipyard	Not Public	Gov Contracts	<20,000 DWT each	❌ No

*L&T data is estimated based on publicly available infrastructure updates and contract wins.

Key Observations:

• Cochin Shipyard is miles ahead on capacity and diversification.
• Mazagon Dock is the cash cow with the biggest order book, thanks to the defence pipeline.
• GRSE is small but growing fast with exports and inland shipping.
• L&T is a sleeping giant — its private yard has world-class infrastructure but is underutilized.

Despite decent revenue numbers, India’s output is still tiny in the global context. To meet the 2047 target, output must rise from 0.072 million GT to 0.33 million GT annually.

In short: capacity, efficiency, and private participation need to scale — fast.

What’s Holding India Back?

If shipbuilding were a Bollywood movie, India would be the talented underdog — full of potential, but held back by a terrible script. While countries like China and South Korea churn out ships like a production line, Indian shipyards are stuck dealing with outdated problems. Here’s why:

1. High Capital Costs

Building ships isn’t cheap. But in India, it’s even costlier. Why?

• Interest rates for shipbuilding loans in India are 10–12%, while China and South Korea offer loans at just 1–2% through state-backed credit.
• Even Cochin Shipyard, with all its muscle, has highlighted financing as a key hurdle.

2. Lack of Scale & Modern Infrastructure

• Most Indian shipyards operate on a fraction of the capacity of global players.
• China has 1,200+ active shipyards; India has less than 25 that are commercially significant.
• Many of these still use old systems and manual processes — good for heritage tours, bad for global competition.

3. Zero Export Incentives

• Unlike textiles or electronics, shipbuilders get no PLI scheme, no major tax breaks, and limited export support.
• China offers up to 17% VAT rebates on ship exports. India? Just a polite handshake and a “Good luck, buddy.”

4. Inconsistent Orders & Delays

• Government orders — especially defence — are plagued by delays, cost revisions, and tender uncertainty.
• Even commercial shipping contracts see last-minute changes due to regulatory or tax concerns.

5. Skilled Labour Shortage

• We have lakhs of engineering graduates, but very few trained for marine design, welding, or ship systems.
• Countries like South Korea have shipbuilding training centres attached to yards. India? We’re still drafting the plan.

Bottom Line:

India’s shipbuilding story isn’t lacking ambition — it’s lacking alignment. Fixing policy gaps, easing credit, and building modern facilities will decide whether we sail ahead or just keep waving from the shore.

Private Companies Betting Big

It’s not just the government that’s waking up — Indian corporates have also smelled opportunity. From old public sector giants to agile private players, companies are now scrambling to get a piece of this ship-sized pie.

Cochin Shipyard Ltd (CSL): The PSU Powerhouse

Cochin Shipyard is the flagbearer of India’s shipbuilding revival.

• It built India’s first indigenous aircraft carrier — INS Vikrant.
• Has a strong defence order book worth over ₹24,000 crore.
• Plans to expand capacity with a new dry dock and ship lift system.

CSL is also bidding for commercial export orders, including from Europe and West Asia, and is building autonomous vessels and green ships using methanol and hydrogen fuel cells.

Larsen & Toubro (L&T): The Private Muscle

L&T’s shipbuilding unit is aggressively expanding:

• Recently delivered a Floating Border Outpost (FBOP) to BSF.
• Has received defence contracts for Submarines and Naval platforms.
• Looking to scale up its Kattupalli Shipyard into a global hub.

Adani Group: Entering with Scale

Adani has entered the sector via Adani Ports and SEZ, and is eyeing:

• A commercial shipyard project near Mundra, Gujarat of 45,000 cr.
• Strategic tie-ups with international shipbuilders.
• Entry into military and LNG vessel segments.

Given its deep pockets and logistics expertise, Adani’s entry could tilt the scales significantly.

Other Emerging Players

• Garden Reach Shipbuilders & Engineers (GRSE): Leading supplier to the Navy.
• Mazagon Dock Shipbuilders: One of the oldest defence shipbuilders.
• Chowgule Shipyard & Titagarh Rail Systems: Expanding into commercial shipping.
• Reliance Naval: Making a comeback after restructuring.

Why the Sudden Rush?

Simple: Everyone sees the numbers.
From $1.12 billion in 2024 to a projected $8.12 billion by 2033, the growth potential is undeniable. And with government support and rising defence orders, early movers will likely enjoy the biggest waves.

Conclusion: From Forgotten Shipyards to Billion-Dollar Dreams

India’s shipbuilding industry is no longer the sleepy giant it once was. From a modest $90 million valuation in 2022, it’s surged past $1 billion in just two years — and the future looks even brighter. With ambitious targets of $8.12 billion by 2033 and a whopping $62 billion by 2047, India is poised to climb the global ranks from 20th to the top 10.

But ambition alone won’t build ships. Success depends on execution — large investments, smart partnerships, and a green shift will be key.

For investors, this is a signal: Indian industrial sectors, especially shipbuilding, could be the next big growth story. Keeping an eye on these themes could open new opportunities as India sails towards industrial resurgence.

Start tracking these industrial growth themes today with Angel One — your gateway to India’s future.

Frequently Asked Questions (FAQs)

1. What is the current size of the Indian shipbuilding industry?

The Indian shipbuilding industry was valued at around $1.12 billion in 2024, growing significantly from $90 million in 2022.

2. How fast is the Indian shipbuilding industry growing?

It is growing at a rapid pace with a projected compound annual growth rate (CAGR) of 60%, aiming to reach $8.12 billion by 2033.

3. What is India’s ranking in the global shipbuilding market?

Currently, India ranks 20th with a 0.05% share in the global commercial shipbuilding market.

4. What are India’s future targets for shipbuilding?

India aims to become a Top 10 global shipbuilder by 2047, targeting a market size of $62 billion and increasing annual shipyard output to 0.33 million gross tons (GT).

5. How is the government supporting the shipbuilding industry?

The Union Budget 2025-26 introduced a Rs. 25,000 crore Maritime Development Fund to boost long-term investments, with 49% government funding and 51% from ports and private sector.

6. Which companies and countries is India partnering with?

India is pursuing strategic partnerships with global leaders like Hyundai and Mitsubishi to boost technology and capacity.

7. What role does green shipping play in India’s shipbuilding future?

India plans to invest in green shipping and carbon-free fleets to align with global sustainability goals and reduce maritime emissions.

8. How can investors benefit from India’s shipbuilding industry growth?

The sector presents a high-growth opportunity within India’s industrial resurgence, offering potential investment avenues in infrastructure, manufacturing, and maritime stocks.

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