'Maruti moment': India aims Rs 70,000 crore package for domestic shipbuilding; reduce reliance on foreign vessels

India is aiming for a "Maruti moment" in shipbuilding, seeking to replicate the success of Maruti Suzuki’s 1980s automobile revolution. The government announced a Rs 70,000-crore ($8 billion) package to revitalize domestic shipyards, boost India’s maritime ecosystem, and reduce the country’s heavy reliance on foreign vessels, which currently handle about 95% of its import-export trade.

The plan includes a maritime development fund, a revamped shipbuilding assistance scheme, and incentives for South Korean and Japanese shipbuilders to establish operations in India, either independently or in partnership with local shipyards.

The move aims not only to attract global investment but also to reduce India's dependence on foreign ships, and strengthen long-term maritime security.


"With this new package, it's like the Maruti moment for shipbuilding," TK Ramachandran, secretary at the Ministry of Ports, Shipping and Waterways told ET.

"But we have to create major domestic demand for ships to make these incentives work," Ramachandran added.

India currently spends around $75 billion annually on hiring foreign ships—a figure that could surge to $400 billion by 2047 if domestic shipbuilding capacity is not expanded.

Highlighting the strategic importance of the initiative, M Angamuthu, Chairperson of Mumbai Port Authority, said India’s reliance on foreign vessels leaves the nation vulnerable during global disruptions such as pandemics, wars, or sanctions. "A robust Indian fleet is essential to ensure continuity and sovereign control over the country’s critical supply chains," he added.

Currently, India owns just 1,500 ships, with only 220 operating overseas for EXIM trade. The country has barely a dozen shipyards capable of building ocean-going vessels, producing less than 1% of global shipbuilding, compared with China’s 70% share, followed by South Korea and Japan.

Ramachandran noted that the government has been in talks with several Korean and Japanese shipbuilders, many of whom are currently operating at full capacity.

"They are choker-blocked with orders until 2028 or even 2029, so they are seeking alternative locations to build ships. With this incentive package, India is well positioned to attract them," he added.

Notable Korean shipbuilders include Samsung Heavy Industries, Hyundai Heavy Industries, Hanwha Ocean, and HD Korea Shipbuilding, while prominent Japanese firms such as Mitsubishi, Hitachi, and Kawasaki are also active in global shipbuilding.