Is Now the Right Time for Collaborative Shipbuilding with South Korean Firms?
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Synopsis
As India aims to boost its maritime industry, Minister Hardeep Singh Puri emphasizes the potential for collaboration with South Korean shipping companies. With India's growing energy demands and favorable policies, this partnership could redefine shipbuilding, ensuring a robust maritime future. Discover how this initiative aligns with the 'Make in India' campaign!
Key Takeaways
- India's maritime sector is poised for growth.
- Strategic collaboration with South Korea offers vast opportunities.
- Government incentives support shipbuilding initiatives.
- India aims to become a global maritime hub.
- Energy demands drive the need for new vessels.
New Delhi, Nov 15 (NationPress) Korean shipping enterprises possess the expertise and resources, while India boasts the demand, skilled workforce, and favorable policies to forge a prosperous alliance in line with the ‘Make in India’ initiative, stated Petroleum and Natural Gas Minister Hardeep Singh Puri on Saturday.
During his visit to Seoul, Puri engaged with various South Korean firms, seeking avenues for strategic collaboration between India and Korea, particularly in the shipbuilding sector.
“I toured the vast shipbuilding site of Hanwha Ocean in Geoje, South Korea. With significant growth across various sectors, the Indian economy, recognized as one of the fastest expanding in the globe, along with our energy sector, presents extensive partnership and investment opportunities as we strive for Viksit Bharat under PM Modi,” Puri shared on X.
“Our energy public sector units invest approximately $5-8 billion annually on energy freight, and there is an initial requirement for about 59 vessels. This represents a tremendous opportunity for global leaders like Hanwha Ocean to partner with us and construct these vessels in India,” the minister remarked.
He further emphasized that now is the opportune moment for “our collaboration in shipbuilding to satisfy global demand.”
“We will not only recuperate the costs of our vessels within five years but also position India as a global maritime shipping center,” stated Puri.
India has launched robust support initiatives to expedite shipbuilding, including 15–25 percent capital support for vessels constructed in India, an additional 5 percent incentive for ship recycling, the Marine Development Fund for equity financing, 3 percent interest subvention, and infrastructure assistance for greenfield shipyards and clusters.
The minister highlighted the importance of enhancing LNG and crude carrier shipbuilding to fulfill India's escalating energy needs and establish a self-sufficient maritime future.
Puri had previously visited the advanced shipyard of HD Hyundai Heavy Industries in Ulsan, renowned as the world’s largest shipyard engaged in ship construction, offshore plants, and machinery sectors.
“With 20 percent of vessels either destined for or departing from India in the next 15 years, this presents a prime opportunity for Korean ship manufacturers to collaborate with us and ‘Make in India for the World’,” concluded the minister.
Point of View
The collaboration between India and South Korea in shipbuilding presents a strategic advantage that aligns with India's ambitions for self-reliance. This initiative not only aims to fulfill domestic demand but also positions India as a key player on the global maritime stage. It's a forward-thinking move that can bolster economic ties and enhance India's industrial capabilities.
NationPress
15/11/2025
Frequently Asked Questions
What opportunities exist for shipbuilding in India?
India's growing energy demands and favorable policies create significant opportunities for shipbuilding, particularly in LNG and crude carrier construction.
Who are the key players in this collaboration?
Key players include Indian energy public sector units and South Korean firms like Hanwha Ocean and HD Hyundai Heavy Industries.
How does the government support shipbuilding initiatives?
The Indian government provides various incentives, including capital support, interest subvention, and financial assistance for infrastructure development.
What is the expected impact of this collaboration?
This collaboration is expected to create a self-reliant maritime industry in India, fulfilling domestic requirements and positioning India as a global shipping hub.
What is the timeline for vessel requirements?
India has an initial requirement for about 59 vessels, with significant demand anticipated in the next 15 years as maritime traffic increases.
