HMS Trincomalee, still afloat in a naval museum in England, was laid down in 1816 at Bombay’s Wadia yard from Malabar teak by Indian craftsmen. Nine generations of the Wadias built more than 400 ships for the British. The paradox is that the same industry was then systematically suffocated by the colonial rulers.
The Registry Act of 1815 blocked India-built ships from profitable British trades precisely because Malabar teak was superior to European oak and India-made ships were seen as a threat to the British shipbuilding industry. Indian yards were allowed to work for the Empire, as employees, not as independent commercial competitors.
After Independence, the state rebuilt shipbuilding around defence needs. Mazagon Dock, GRSE, Hindustan Shipyard and Cochin Shipyard delivered warships and submarines, but commercial export scale never followed.
South Korea, starting in the 1970s with an explicit export strategy and aggressive state finance, captured high-value orders globally. India stayed a minor commercial player. By 2026 the global market is extreme: China, South Korea and Japan account for more than 90% of output and orders. China holds roughly 65–70% of the order book and completed over 53 million DWT in 2025. Japan’s share has fallen. Europe has largely left bulk commercial work. India’s output rose 41% from 40,923 GT in 2024 to 57,637 GT in 2025, but it still sits far outside the top ten.
Gaps remain in large bulk carriers, tankers, container ships, LNG/LPG vessels and green designs. Productivity is lower, financing costlier, high-grade steel and engines are often imported, and complex commercial designs are still frequently licensed. The ₹69,725 crore package aims to close that gap through financial assistance, a Maritime Development Fund, capacity expansion and three greenfield clusters in Andhra Pradesh, Gujarat and Tamil Nadu. Early movement is already visible: SBFAS and MDF guidelines are out; HD Hyundai has signed for a mega yard in Tamil Nadu and a block-fabrication JV with Cochin Shipyard; Cochin won a $360 million CMA CGM feeder-container order; private yards have booked tankers and bulk carriers; demand aggregation covers hundreds of vessels. India is finally shifting from protected defence yards toward export-competitive commercial scale. Whether that succeeds depends on supply chains, design houses and sustained execution.
The article reflects on the gaps in India’s shipbuilding capabilities compared to global players and how the government push is starting to show results on the ground. The full article can be read on Chapter One Mag.
