India's mega shipbuilding plan unfolds; 5 greenfield and 3 brownfield facilities taking shape on both sides of coastline
The government has finalized the locations with pre-secured land parcels and necessary clearances, Union shipping secretary T.K. Ramachandran said. The mega-initiative, a cornerstone of the nation's Atmanirbhar Bharat drive, aims to transform India into a global shipbuilding powerhouse.
States have made rapid progress in developing maritime clusters, Ramachandran said in an interview. "All state governments have formed special purpose vehicles to implement the project with approved and identified land parcels and access network connecting the clusters with roads and railway infrastructure. Seaside infrastructure is being developed along with breakwater facilities," he said.
Nations are increasingly looking at shipping as a strategic sector, given Chinese dominance of the sector. US president Donald Trump has called for revitalizing shipbuilding, viewing it as crucial for both national security and economic prosperity. He has signed an executive order to create a Maritime Action Plan, established a new Office of Maritime and Industrial Capacity within the National Security Council, and proposed measures like imposing fees on Chinese-built vessels entering US.
The five greenfield clusters that will come up in Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra will host the entire spectrum of ship manufacturing to equipment production, vendors, bunkering stations, insurance and ship leasing, said Ramachandran. These sites will house everything from ship manufacturing and equipment production to vendors, bunkering stations, insurance, and ship leasing entities.
India's push is driven by a desire to significantly increase India's miniscule share of global shipbuilding, currently below 1%. The Maritime India Vision 2030 and Vision 2047 plans aim to elevate India into the top 10 and then top five shipbuilding and ship-owning countries worldwide, respectively. The target is to raise the share of Indian-built ships in India's fleet from the current 5% to 7% by 2030 and a substantial 69% by 2047.
Odisha, Andhra Pradesh and Tamil Nadu have commissioned techno economic feasibility reports, and the government is exploring tie-ups with global shipbuilders for these clusters. While the secretary did not comment on the required investment for these projects, it is estimated that about ₹2 trillion would be required to develop the infrastructure over five to six years. The investment is part of the broader Maritime India Vision 2030, which anticipates a total investment of ₹3-3.5 trillion across ports, shipping, and inland waterways.
In addition, three brownfield facilities will be developed: two in Gujarat (a ship repair facility in Vadinar and a shipbuilding facility in Kandla) and one shipbuilding facility near Cochin Port in Kerala.
Shipping ministry officials have visited shipbuilding hubs in South Korea, Japan, and Scandinavian countries to explore partnerships and joint venture agreements. Ramachandran indicated that some tie-ups between global shipbuilders and Indian private and state-owned companies could materialize soon.
"While we're seeing progress, the global market is still dominated by China, South Korea, and Japan," commented Pushpank Kaushik, CEO & head of business development (subcontinent, middle east and South East Asia) at Jassper Shipping. "To bridge that gap, what's really needed now is a clear push for foreign investment and technology transfer. If policy can make space for that, it'll not only attract global players but also strengthen our position in the international market."
Mint had earlier reported about the government's plan to identify locations on both east and west coast of India as part of its ambitious global ship hub plans.
The Union budget for FY26 outlined several measures to bolster domestic shipbuilding, including a ₹25,000 crore government-industry partnership Maritime Development Fund; revamping the existing Shipbuilding Financial Assistance to address cost disadvantages; and providing credit notes for shipbreaking to help purchase made-in-India ships. The budget also included large ships in the infrastructure harmonized master list, allowing their purchase on easier terms, while providing basic customs duty exemption on raw materials, components, consumables or parts for 10 more years.
India's shipbuilding initiative would also address a concern of the trade about the uncertainty and variability of shipping costs impacting their competitiveness. With better availability of domestic shipping lines at affordable prices, the freight rate volatility due to shock events like covid-19, the Russia-Ukraine war, Red Sea crisis and the Iran-Israel conflict could also be checked.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
7 minutes ago
- Economic Times
Peace time is nothing but 'illusion': Rajnath Singh
ANI Defence Minister Rajnath Singh Peace time is nothing but an "illusion", and India must remain prepared for uncertainty even during periods of relative calm, Defence Minister Rajnath Singh said while hailing the armed forces for the valour they displayed during Operation an address at an event, Singh said the performance of the indigenously built equipment and platforms in the operation increased the global demand for India-built military products."The world is looking at our defence sector with new respect. A single delay or error in financial processes can directly affect operational preparedness," he said."Most of the equipment we once imported is now being made in India. Our reforms are succeeding because of the clarity of vision and commitment at the highest level," he said. The defence minister was addressing the Controllers' Conference of the Defence Accounts Department (DAD). "A single delay or error in financial processes can directly affect operational preparedness," he said, and called on the DAD to evolve from a "controller" to a "facilitator" in sync with increasing participation of the private sector in into the larger geopolitical situation, the defence minister cited an analysis by the Stockholm International Peace Research Institute, which said the global military expenditure reached USD 2.7 trillion in opens up tremendous opportunities for India's indigenous defence industries, he defence minister praised the DAD's new motto "Alert, Agile, Adaptive" and noted that these are not mere words, but a reflection of the work culture required in today's rapidly evolving defence urged officials to undertake internal reform through self-introspection, rather than relying solely on external audits or consultants. "Improvements made through internal evaluation create living organisations. These reforms are more organic, with fewer barriers. "Peace time is nothing but an illusion. Even during periods of relative calm, we must prepare for uncertainty. Sudden developments can force a complete shift in our financial and operational posture," he said."Whether it's stepping up equipment production or adapting financial processes, we must be ready with innovative techniques and responsive systems at all times," he urged the DAD to incorporate this mindset into their planning, budgeting and decision-making the increasing strategic and economic significance of the defence sector, Singh called for a shift in perception from defence spending as mere expenditure to an economic investment with multiplier impact. "Until recently, defence budgets were not seen as part of the national economy. Today, they are growth drivers," he added. Singh said India, along with the rest of the world, is entering a new phase of re-armament, marked by capital-intensive investments in the defence sector. The defence minister called upon the DAD to incorporate defence economics in their planning and assessments, including social impact analysis of R&D projects and dual-use technologies.
Hindustan Times
9 minutes ago
- Hindustan Times
Inside the secret military dialogue between Britain and Argentina
America's top brass worries about the South Atlantic. It is a jumping-off point for Antarctica , where Russia and China boast 15 bases between them, scrambling to lock down resources . It is linked to the Pacific by the Strait of Magellan, the only safe maritime route between the two oceans other than the drought-hit Panama Canal . Traffic through the Strait is surging, as is illegal Chinese fishing on either side. China is pushing infrastructure projects across the region. America's top generals have visited Argentina's deep south three times in the last two years. At first glance the United States is well positioned to manage any threat. President Javier Milei of Argentina is a hyper-willing ally. Britain has Typhoon fighter jets and the HMS Forth patrol vessel stationed in the Falkland Islands. But Argentina's armed forces are in bad shape. Britain's are focused on defending the Falklands (sovereignty over which Britain has and Argentina claims) from Argentina. As a legacy of the Falklands war, Britain has tight restrictions on weapons sales to Argentina. These have hamstrung the latter's efforts to improve its armed forces and pushed it towards buying Chinese planes and weaponry, alarming the United States. Now a mix of factors, including Mr Milei's unusual perspective on the islands and American enthusiasm for Argentina's military modernisation, have created an openin At first glance the United States is well positioned to manage any threat. President Javier Milei of Argentina is a hyper-willing ally. g for a new strategic arrangement in the South Atlantic. Quietly, after a long hiatus, dialogue between the Argentine and British defence ministries has restarted. Argentina wants Britain to loosen its restrictions on arms purchases. Britain wants discreet acceptance of its role in the rest of the South Atlantic even while Argentina maintains its constitutional claim over the Falklands. Britain also wants Argentina to work with it on practical matters to improve life on the Falklands. The warming began in February 2024, a few months after Mr Milei took office. British defence attachés visited the ministry of defence in Argentina for first time in three years. In September that year the British and Argentine foreign ministers met and arranged a visit by Argentines to the graves of family members on the Falklands. They also agreed to share fisheries data and to restart monthly direct flights to the Falklands from Argentina. Defence dialogue then ramped up. An Argentine delegation visited London in January. Next, a British one is expected to visit Buenos Aires. Mr Milei wants to modernise his country's armed forces with the best NATO-compatible equipment. He is cutting government spending savagely, but raising the defence budget from 0.5% of GDP to 2% over the next seven years. Last year Argentina applied for NATO-partner status. Britain is interested in a deal, too, but cautious. It shares the American concerns about the South Atlantic. Argentina's de facto acceptance of Britain's relevance in the region would facilitate closer co-operation on everything from science to security, not just with Argentina but also with its neighbours, Chile and Uruguay. But while the Argentine families visited in December, Argentina has not yet shared fishing data or restarted flights, stepping stones to progress on arms policy. The islanders are wary. 'We feel very secure,' says Leona Roberts of the Falklands' Executive Council, 'but we would probably not be wildly comfortable with the UK supplying military equipment to Argentina.' Britain has long blocked sales of military equipment with British components to Argentina, even by third countries. Given the strength of Britain's arms industry this has been a serious constraint. In 2020 it blocked the sale of Korean fighter jets with some British parts. The stated policy is to block sales that could 'enhance Argentine military capability'. Yet there is wriggle room. Britain may allow sales that 'are not detrimental to the UK's defence and security interests'. A first step could be to interpret that clause more flexibly. The shape of things to come There are several reasons to believe a new arrangement is possible. Few consider Argentina a real threat to the Falklands. 'It's militarily unthinkable…[Britain] would wipe us off the planet,' says Alejandro Corbacho, a military historian at the University of CEMA in Buenos Aires. Britain seems more willing to reconsider its restrictions if Argentina planned to make large purchases, as that would boost Britain's defence industry. If so, that would suggest the embargo is more about politics than protecting the Falklands. Britain knows its restrictions are anyway losing bite as more countries make military kit. That the United States wants a new arrangement matters too. In public statements it has offered 'steadfast' support for the modernisation of Argentina's armed forces. In private, one American with knowledge of the matter calls Argentina 'a huge partner' but says its military is 'in very sore need of equipment and training'. But that equipment must be Western, not Chinese. Britain's embargo makes that harder. Continued intransigence could end up bolstering those in a post-Milei government that believes Argentina's future, in weaponry and politics, runs through China rather than the West. Argentina's dalliance with American adversaries is real. Mr Milei likes trading with the Asian giant. In 2023, before he took office, a Chinese firm looked set to build a large port near the Argentine entrance to the Strait. That project collapsed amid intense objections both foreign and domestic, but China, which operates a space station in Patagonia, remains keenly interested in the region. Under the last administration Argentina was 'gnat's-ass close to buying Chinese fighter aircraft', warns the American. In 2021, weeks before the invasion of Ukraine, the previous government signed a deal with the Russian ministry of defence allowing Argentine officers to travel to Russia for training. During Joe Biden's presidency the United States pushed Britain to let Argentina buy modern F-16 fighter jets with a British-made ejector seat. Britain was reluctant and an alternative was found. Argentina bought older F-16s from Denmark with $40m of American money. These did not have British parts, so its approval was not required. However, the United States still sought to explain and justify it to Britain, which accepted it. That was progress. 'The US government was also interested in whether the broader export controls could be ended,' says a former American official. A spokesperson for the British government says it has 'no current plans to review the UK's export-control policy for Argentina'. But it is easy to imagine Britain's position shifting. The Trump administration is pushy, ignores orthodoxy and is close to Mr Milei, whose pro-Western stance probably helps Britain to be flexible. His conciliatory tone and taboo-breaking on the Falklands is crucial. He openly admires Margaret Thatcher, who led Britain during the Falklands war. He admits that the islands 'are in the hands of the UK' and assures that Argentina will not try to retake them by force. Recently, he even seemed to imply that the islanders have a right to self-determination, Britain's position. Domestic politics remain a formidable barrier in both countries. Argentina appointed a new foreign minister in October. Despite enthusiasm in other parts of government, better ties with Britain seem less of a priority for the new man. For its part, Britain worries about who comes after Mr Milei. Selling arms to a Milei-led Argentina may be okay, but he will leave office in 2027 or 2031. An attempt in 2016 to reset relations was torn up after the left-wing Peronists returned to power. It would be embarrassing to help Argentina modernise its armed forces only for that to happen again. In both countries the flag-waving opposition could paint an agreement as a concession and use it to whip up anger. In Britain, Nigel Farage's Reform UK party is surging in the polls and could easily pressure the government over any new arrangement, framing it as a betrayal of the war dead, perhaps. In Argentina the Peronists have already attacked Mr Milei for his stance on the Falklands. With mid-term elections in October he and his team may prefer to steer clear of the issue for now. Yet the overriding logic of Mr Milei's foreign policy is airtight alignment with the United States (notwithstanding trade with China). Britain has a similar, if less absolutist, tradition. The Trump administration is so exercised about Chinese influence in Latin America that it threatens to seize the Panama Canal. It is also clear about the threat in the South Atlantic. If it pushes harder its two allies may draw a similar conclusion—and act accordingly.
Time of India
9 minutes ago
- Time of India
Foxconn second quarter revenue rises 15.82% on year
Taiwan's Foxconn , the world's largest contract electronics maker, reported record second-quarter revenue on strong demand for artificial intelligence products but cautioned about geopolitical and exchange rate headwinds. Revenue for Apple 's biggest iPhone assembler jumped 15.82% year-on-year to T$1.797 trillion, Foxconn said in a statement on Saturday, beating the T$1.7896 trillion LSEG SmartEstimate, which gives greater weight to forecasts from analysts who are more consistently accurate. Robust AI demand led to strong revenue growth for its cloud and networking products division, said Foxconn, whose customers include AI chip firm Nvidia. Smart consumer electronics, which includes iPhones, posted 'flattish' year-on-year revenue growth affected by exchange rates, it said. June revenue roses 10.09% on year to T$540.237 billion, a record high for that month. Foxconn said it anticipates growth in this quarter from the previous three months and from the same period last year but cautioned about potential risks to growth. "The impact of evolving global political and economic conditions and exchange rate changes will need continued close monitoring," it said without elaborating. U.S. President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the United States, with the "take it or leave it" offers to be sent out on Monday. The Chinese city of Zhengzhou is home to the world's largest iPhone manufacturing facility, operated by Foxconn. The company, formally called Hon Hai Precision Industry, does not provide numerical forecasts. It will report full second quarter earnings on August 14. Foxconn's shares jumped 76% last year, far outperforming the 28.5% rise for the Taiwan market, but are down 12.5% so far this year, reflecting broader pressure on tech stocks rattled by Trump's tumultuous trade policy. The stock closed down 1.83% on Friday ahead of the revenue data release, compared with a 0.73% drop for the benchmark index.
