New Delhi: India needs a strong long-term plan to increase its shipbuilding capacity and compete in the global maritime industry. A new EY-FICCI report has recommended a 10-year vessel procurement pipeline, better financing and stronger domestic supply chains to boost India’s shipbuilding and ship-repair sector.
The report highlights the challenges facing Indian shipyards and explains how regular orders and long-term investment can help the industry grow.
EY-FICCI Report: India’s Shipbuilding Industry Faces Major Challenges
India has a strong geographical position because it is close to important international shipping routes. However, its share in the global shipbuilding and ship-repair markets remains very small.
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According to the report, India accounted for approximately 0.075% of global shipbuilding output in 2025. Its share of the global ship-repair market was also below 1% in 2024.
The report highlighted that India repaired 418 vessels during the financial year 2023-24. Private-sector shipyards handled 227 of these vessels.
India currently has around 42 dry docks, but its ship-repair industry still faces several infrastructure and operational challenges.
India’s Shipbuilding Output Remains Uneven
The report highlighted that India’s commercial shipbuilding output has changed significantly over the years.
The country’s shipbuilding output reached 72,137 Gross Tonnage (GT) in 2021. However, it stood at 57,637 GT in 2025. Although the industry recorded an increase in output, the report said that this growth has not yet developed into a stable long-term trend.
This shows that India needs regular shipbuilding orders, better infrastructure and long-term investment to increase production.
EY-FICCI Report Recommends A 10-Year Shipbuilding Plan
One of the major recommendations in the report is to create a national maritime demand and market assurance mechanism.
This system would bring together vessel requirements from public sector companies, ports, coastal shipping operators, inland-waterway agencies and other major users.
The report suggested creating a structured, rolling 10-year procurement pipeline. This would help Indian shipyards understand future demand and prepare for upcoming orders.
A predictable order system could also encourage shipyards to invest in new technology, equipment, workers and production facilities.
Standardised Ship Designs Could Improve Productivity
The report also recommended standardising vessel designs and introducing regular procurement programmes.
Under this approach, shipyards could build similar types of vessels using standard designs instead of developing every vessel through a completely different process. This could reduce production delays, improve efficiency and help suppliers plan their investments. Regular orders would also make it easier for shipyards to secure financing and manage their long-term business plans.
Better Financing Is Important For Industry Growth
Access to affordable and long-term financing is another major challenge for India’s shipbuilding industry. Building ships requires large investments in land, machinery, technology, equipment and skilled workers. Shipyards also need enough working capital to manage construction projects.
The EY-FICCI report recommended stronger maritime financing through long-term construction loans, working capital support and refund guarantees. These measures could help Indian shipyards expand their production capacity and compete more effectively with international companies.
EY-FICCI Report: Domestic Shipbuilding Demand Could Create New Opportunities
India’s growing demand for new vessels could support the development of domestic shipyards. The report highlighted opportunities in several areas, including:
- Replacement of old vessels in India’s shipping fleet.
- Coastal shipping and transportation.
- Inland waterways and cargo movement.
- Port services and other maritime activities.
These requirements could create regular demand for Indian-made vessels. A strong domestic market would also help shipbuilders reduce their dependence on uncertain international orders.
EY-FICCI Report: International Partnerships Could Strengthen Indian Shipyards
The report also highlighted the importance of international cooperation in developing India’s maritime industry.
Partnerships with global companies could help Indian manufacturers improve vessel design, production engineering, propulsion systems, automation and marine technologies.
International cooperation could also support supplier development, technical training and better maintenance services. However, the report stressed that India must combine international technology with domestic manufacturing capabilities to build a competitive maritime industry.
Ship-Repair Industry Has Significant Growth Potential
India also has an opportunity to become a major global destination for ship-repair services.
Its location near important international shipping routes gives it an advantage in attracting ships that need maintenance and repairs. However, the industry faces problems such as limited repair infrastructure, longer turnaround times, shortages of spare parts and service reliability issues.
These challenges make it difficult for Indian shipyards to compete with established international ship-repair centres.
The report recommended improving repair facilities, strengthening domestic suppliers and increasing operational efficiency to attract more international business.
EY-FICCI Report: Government Support Could Help India’s Shipbuilding Sector
The recommendations come as the Indian government is also working to strengthen the country’s shipbuilding industry.
In July 2026, the Ministry of Ports, Shipping and Waterways highlighted a comprehensive ₹69,725 crore shipbuilding package.
The package includes financial assistance for shipyards, a ₹25,000 crore Maritime Development Fund and a Shipbuilding Development Scheme worth ₹19,989 crore.
The government has also taken steps to develop new shipbuilding clusters, expand existing facilities and improve maritime skills.
These measures are aimed at increasing India’s shipbuilding capacity and strengthening its position in the global maritime industry.
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FAQs
India needs a 10-year shipbuilding pipeline to provide regular orders and long-term demand visibility to domestic shipyards. It could encourage investment, improve production planning and help shipbuilders secure financing.
The EY-FICCI report, titled Optimising India’s Shipbuilding And Ship Repair Capacity: Roadmap For Industrial Scale-Up, recommends long-term vessel orders, better financing and stronger domestic supply chains to improve India’s shipbuilding industry.
The ₹69,725 crore shipbuilding package is a government initiative to strengthen India’s shipbuilding capacity, maritime financing and workforce skills. It includes financial assistance, the Maritime Development Fund and the Shipbuilding Development Scheme.
