South Korean shipbuilding giant HD Hyundai is planning to establish a $4 billion greenfield shipyard in Thoothukudi, Tamil Nadu, marking one of the largest foreign investments in India’s shipbuilding sector. The project is expected to significantly strengthen India’s maritime manufacturing capabilities and position the country as a competitive hub for global shipbuilding.
The proposed facility is expected to have the capacity to produce around 3.5–4 million gross tonnes (GT) of ships annually, making it one of the largest shipbuilding facilities planned in the country. The company is reportedly considering developing the project largely on its own, with possible support from India’s Maritime Development Fund.
HD Hyundai signed a memorandum of understanding with the Tamil Nadu government in December 2025 to explore the establishment of the shipyard, with Thoothukudi emerging as the preferred location due to its favourable coastal conditions and growing industrial ecosystem.
The company has already deployed technical teams in the region to evaluate infrastructure and project requirements. The initiative may also include the development of maritime crane manufacturing capabilities in collaboration with BEML, supporting shipyard operations and strengthening India’s heavy engineering supply chain.
The proposed investment aligns with India’s broader maritime strategy to expand shipbuilding capacity and become one of the world’s top shipbuilding nations by 2047. Once developed, the project is expected to boost technology transfer, create employment opportunities, and enhance India’s global presence in the maritime sector.