India is advancing Korean shipbuilding partnerships to achieve its top-five status by 2047, says Indian Minister of Ports, Shipping and Waterways
India is turning to South Korean investment and technology to help build one of the world’s top five shipbuilding industries by 2047, Indian Ports, Shipping and Waterways Minister Sarbananda Sonowal said.
The initiative followed talks between Indian Prime Minister Narendra Modi and South Korean President Lee Jae Myung during Lee’s state visit to New Delhi on April 20.
During a four-day visit to South Korea, Sonowal told The Korea Herald that partners developing a proposed shipyard in Thoothukudi aim to agree on a joint venture structure and complete a detailed project report within six months.
The project in the southern Indian state of Tamil Nadu involves HD Korea Shipbuilding & Offshore Engineering, HD Hyundai’s shipbuilding holding company.
Investment terms remain under negotiation, and construction and first-delivery dates have yet to be agreed.
“We expect our engagements with leading Korean shipbuilders to result in concrete investment proposals,” Sonowal said.
India also wants Samsung Heavy Industries and Hanwha Ocean to invest in new shipyards or help expand existing yards.
Both companies are providing technical support to Indian shipyards and participating through Indian partners in government vessel tenders, according to the minister.
To attract investment, India is offering Korean companies opportunities to compete for planned public-sector purchases of more than 400 vessels worth about $23 billion, alongside financial support for ship construction and new shipyards, he said.
Those planned purchases offer potential business but do not yet represent confirmed orders.
HD Hyundai said Thursday it planned to use its shipbuilding technology and shipyard management experience to help India strengthen its industry and develop a network of shipyards and suppliers.
Shipyard and financing
HD Korea Shipbuilding & Offshore Engineering, National Shipbuilding & Heavy Industries Park Tamil Nadu and Sagarmala Finance signed an agreement on April 20 to develop, finance, build and operate the Thoothukudi shipyard, Sonowal said.
A feasibility study is complete, and the project has preliminary approval under India’s National Shipbuilding Mission. The partners aim to agree on how to structure the joint venture and complete a detailed project report within six months, he said.
The minister did not specify when that period would begin. The report would cover the types of ships to be built, capacity, facilities, costs and the construction schedule.
Sonowal said the proposed yard could build ships totaling 2.5 million gross tons annually. India aims to build 4.5 million gross tons a year by 2047.
He pointed to a $7.8 billion shipbuilding support package, approved in September 2025, to attract investors. It includes financial aid for ship construction and grants and incentives for new shipyards, according to his ministry.
“Under the one-year procurement plan, tenders are being issued for 62 vessels with an estimated value of $5.7 billion and a cumulative capacity of 2.85 million gross tons,” he said.
Bids or initial expressions of interest have been invited for 44 vessels, while contracts for four vessels worth about $100 million have been awarded, he added.
“Procurement will be undertaken by individual agencies in accordance with their operational requirements, approved budgets, and procurement schedules,” he said. when asked about funding for the more than 400 planned public-sector vessels.
India’s Shipbuilding Financial Assistance Scheme covers more than 100 planned vessels worth over $1.27 billion, with export orders accounting for more than 80 percent of that value. The program provides financial aid equal to 15 percent to 25 percent of a vessel’s contract value, according to India’s Press Information Bureau.
Suppliers and training
Sonowal said the Korea Marine Equipment Association, representing 304 companies plans to open a Mumbai branch this week, while India and KOICA are working on a shipbuilding training center in Kochi.
The association says that its members are preparing to enter the Indian market within two years.
India's reliance on imports for ship engines, propulsion systems, deck machinery, and electrical and navigation systems creates opportunities for Korean suppliers, according to Sonowal.
He also cited cooperation between Indian and Korean maritime universities and the expertise of Indian professionals in Korean shipyards as resources for India’s shipbuilding expansion.
“Their expertise and international experience can play an important role in mentoring future generations of shipbuilding professionals and in helping Indian shipyards achieve globally competitive levels of productivity and quality,” he said.
sanjaykumar@heraldcorp.com
