India’s shipbuilding sector is facing fresh scrutiny after a major order from a leading industrial conglomerate for new bulk carrier vessels was placed with Chinese shipyards, raising questions about domestic competitiveness and the effectiveness of policy measures intended to bolster local shipbuilding capacity.
The order, reportedly placed by JSW Group, involves the acquisition of multiple bulk carrier ships to support the company’s expanding logistics and raw material transport needs. Rather than utilising Indian shipyards capable of building large merchant vessels, the contracts were awarded to shipbuilders in China, a country with a dominant share of global commercial ship construction. The development has triggered concerns among stakeholders in India’s shipbuilding ecosystem about lost opportunities for domestic fabrication and employment generation.
Industry representatives say that while Chinese shipyards offer competitive pricing and delivery timelines, such decisions underscore persistent challenges faced by Indian yards, including high financing costs, slower execution cycles, and comparative gaps in large-scale fabrication infrastructure. India’s shipbuilding policy has for years emphasised the need to develop indigenous capacity, particularly for commercial vessels, in order to capture a larger share of global ship orders and to reduce reliance on overseas production.
Experts pointed out that India’s current shipbuilding landscape remains heavily weighted toward defence shipbuilding and smaller inland or coastal vessels, with limited capacity in building large ocean-going bulk carriers and container ships. While policy incentives such as subsidies, tax support and preferential procurement have been introduced in recent years, the pace of growth has lagged behind expectations set at the national level.
The decision by a major corporate customer to look abroad for fleet expansion has reignited debates on whether existing support structures for Indian shipyards are sufficient to attract large commercial orders. Concerns have also been raised over financing mechanisms, project execution timelines and risk perceptions among global ship buyers when considering India as a construction destination.
Analysts note that the choice of Chinese builders reflects broader global dynamics in shipbuilding, where East Asian countries particularly China, South Korea and Japan continue to dominate production due to scale advantages, integrated supply chains and long-standing industry experience. Indian shipyards, by contrast, have struggled to achieve similar economies of scale or to build a consistent pipeline of large commercial projects.
Representatives from the shipbuilding sector have called for renewed policy focus and targeted incentives to strengthen Indian capacity, including support for technology adoption, streamlined financing, and enhanced competitiveness in international bidding. They argue that without such measures, India risks missing out on substantial commercial shipbuilding opportunities as global trade and maritime logistics demand continues to rise.
The development has also drawn attention from policymakers, with calls for closer examination of sectoral reforms aimed at making Indian shipyards more attractive to domestic and international customers alike. Strengthening public-private partnerships, enhancing infrastructure readiness and aligning incentives with global competitiveness benchmarks are among the suggestions being discussed.
As the debate unfolds, the shipbuilding industry continues to advocate for interventions that can level the playing field and support the long-term goal of building a resilient and globally competitive domestic shipbuilding ecosystem.