India joins US shipbuilding alliance to counter China's maritime dominance
Synopsis
A US congressional hearing on 24 July named India — alongside Japan and South Korea — as a potential partner in countering China's control of over half the world's commercial shipbuilding. With Washington accounting for less than one-tenth of one per cent of global output, experts are calling for a generational allied coalition, and India's inclusion signals New Delhi's growing weight in Indo-Pacific maritime strategy.
Key Takeaways
A House Foreign Affairs Subcommittee hearing on 24 July identified India as an emerging partner in the US strategy to counter China's shipbuilding dominance.
China controls more than half of global commercial shipbuilding capacity; the US accounts for less than one-tenth of one per cent .
CSIS Vice President Matthew Funaiole specifically named India as 'a new entry into the shipbuilding game.' Brent Sadler of the Heritage Foundation proposed a formal 'maritime group of nations' including Japan , South Korea , the Philippines , Greece and potentially Taiwan .
Proposed countermeasures include tariffs , port fees , sanctions , export controls and allied investment in US shipyards.
Witnesses warned that displacing China's dominance will require coordinated industrial planning over several decades .
India has been identified as a key emerging partner in the United States' strategy to counter China's grip on global commercial shipbuilding, with congressional witnesses naming New Delhi alongside Japan and South Korea as part of a long-term allied effort to diversify maritime industrial capacity away from Beijing. The development came into focus during a House Foreign Affairs Subcommittee hearing on 24 July, centred on China's commanding position in the world's shipbuilding sector.
What the Hearing Revealed
The hearing, titled 'Charting a New Course: Countering China's Dominance in Global Shipbuilding', examined how Beijing's state-backed expansion of commercial shipbuilding has created both economic and national security challenges for Washington and its partners. Subcommittee Chair Young Kim opened the session with a stark assessment: China now controls more than half of the world's commercial shipbuilding capacity, while the United States accounts for less than one-tenth of one per cent.
'Our domestic shipyards are backlogged, understaffed, and structurally fragile,' Kim said. 'Every dollar a Western company spends to build a commercial vessel in a Chinese shipyard directly subsidises the People's Liberation Army Navy.'
India's Emerging Role
Matthew Funaiole, Vice President at the Center for Strategic and International Studies (CSIS), specifically named India as a new entrant capable of contributing to allied maritime capacity. He argued that Washington should work 'with allies and partners like South Korea and Japan as well as others — India is a new entry into the shipbuilding game as well — to both align on long-term objectives and then also to build up allied capacity at scale outside of China.'
While Japan and South Korea were described as America's principal partners given their established shipbuilding industries, India's inclusion signals a broader recognition of its growing maritime industrial potential within the Indo-Pacific security architecture.
The Allied Strategy Taking Shape
Ranking Democrat Ami Bera underscored the advantage the US holds over China in one critical respect: alliances. 'The beauty is though; China is doing this alone,' Bera said. 'We have allies that we can do this with.' He pointed specifically to Japan and South Korea when discussing investments, technology sharing and workforce cooperation.
Brent Sadler of the Heritage Foundation called for a formal 'maritime group of nations' drawing together Japan, South Korea, the Philippines, Greece and potentially Taiwan to coordinate shipbuilding, trade and technology policies.
Why This Matters for India
India's mention at a high-profile US congressional hearing is notable. It reflects Washington's recognition that New Delhi's shipbuilding ambitions — backed by government-led modernisation of domestic yards — could eventually plug into a broader allied supply chain. Witnesses cautioned, however, that replacing China's dominance 'is not something that's going to be easily replaced, and it's not something the US can address overnight,' according to Funaiole.
This comes amid India's own push to expand domestic shipbuilding under its maritime vision framework, making the congressional signal a potential accelerant for bilateral defence-industrial cooperation.
Tools Being Considered
Lawmakers discussed a range of instruments to reduce dependence on Chinese shipyards, including tariffs, port fees, sanctions and export controls, alongside incentives for allied companies to invest in American shipbuilding facilities. Funaiole recommended greater transparency into China's maritime industry, investment in high-value maritime technologies and coordinated industrial planning with allies over several decades — a generational commitment, not a quick fix.
The hearing's conclusions point toward a multi-decade allied shipbuilding coalition in which India could play an increasingly significant role as its domestic capacity scales up.
Point of View
' not an established partner; the real weight in this coalition remains with Japan and South Korea, whose shipbuilding industries are decades ahead. For India, the opportunity is real but the gap between aspiration and industrial scale is equally real. If this congressional momentum translates into defence-industrial agreements, it could accelerate India's shipyard modernisation far beyond what domestic policy alone would achieve — but that requires New Delhi to move faster than it historically has on defence manufacturing timelines.
NationPress
24 Jul 2026
Frequently Asked Questions
Why did the US Congress discuss India in the context of shipbuilding?
A House Foreign Affairs Subcommittee hearing on 24 July examined how to counter China's dominance in global commercial shipbuilding, and witnesses named India alongside Japan and South Korea as potential allied partners for building maritime industrial capacity outside China. India was described as a 'new entry into the shipbuilding game' with potential to contribute to a broader allied maritime network.
How dominant is China in global shipbuilding?
China controls more than half of the world's commercial shipbuilding capacity, according to testimony at the hearing. In contrast, the United States accounts for less than one-tenth of one per cent of global output, which lawmakers described as a serious economic and national security vulnerability.
What is the proposed allied shipbuilding strategy?
Witnesses recommended a multi-decade allied coalition involving Japan, South Korea, India, the Philippines, Greece and potentially Taiwan to coordinate shipbuilding, trade and technology policies. Proposed tools include tariffs, port fees, sanctions, export controls and incentives for allied investment in US shipyards.
What did CSIS Vice President Matthew Funaiole recommend?
Funaiole recommended greater transparency into China's maritime industry, investment in high-value maritime technologies, and coordinated industrial planning with allies over several decades. He cautioned that matching China ship for ship was unrealistic and that displacing its dominance could not be achieved overnight.
How does China's commercial shipbuilding connect to its military power?
Witnesses described a 'military-civil fusion' model in which China's commercial shipbuilding base directly supports its rapidly expanding naval fleet. Subcommittee Chair Young Kim argued that every dollar spent building vessels in Chinese shipyards effectively subsidises the People's Liberation Army Navy.
