India Shipbuilding Market

India Shipbuilding Market Insights Forecasts to 2035

• The Market Size is Expected to Grow at a CAGR of around 4.70% from 2025 to 2035
• The India Shipbuilding Market Size is expected to reach at a substantial share by 2035

According to a Research Report Published By Decisions Advisors and Consulting, The India Shipbuilding Market Size is Expected To Grow At a CAGR of 4.70% During The Forecast Period 2025-2035. The sector is being driven by increased international maritime traffic, improvements in fuel efficiency, and the use of 3D printing technologies. The shipbuilding market is primarily driven by rising global seaborne trade, demand for eco-friendly vessels, and technological advancements in ship design and propulsion.

Market Overview

The Indian shipbuilding market refers to the industry involved in the design, engineering, manufacture, and repair of ships and marine vessels, which is carried out at specialised facilities called shipyards. Shipbuilding is also referred to as manufacturing ships and other floating watercraft, and it is often carried out in a facility called a shipyard. Prefabricated parts are commonly employed in modern shipbuilding. Shipbuilding and boatbuilding include the production of supplementary marine equipment, including sails, motors, electronics, and other fittings. In shipbuilding, massive, multi-deck pieces of the hull or superstructure are manufactured, carried to the dock or slipway for assembly, and then lifted into position. It includes both commercial vessels (cargo ships, tankers, bulk carriers, offshore support boats) and defence/naval ships (frigates, submarines, patrol vessels), which serve domestic needs.

India has officially approved a massive $8 billion (?69,725 crore) package to revitalise its shipbuilding and maritime sector, marking the country’s most ambitious reform in this industry.

India's maritime sector enhances ports and manufacturing through strengthening MoUs to create 1.5 Lakh Jobs. Further, signing agreements with international partners, Cochin Shipyard and Mazagon Dock, will invest ?18,700 crore to propel India's shipbuilding growth. The Bihar government announced a ?908 Crore Water Metro Project in Patna. Further, the ?21,500 Crore Bahuda Port project is to increase Eastern India's 150 MTPA Capacity.

Report Coverage

This research report categorises the market for the India shipbuilding market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the India shipbuilding market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition, have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the India shipbuilding market.

Driving Factors

The Indian shipbuilding sector is fueled by robust government backing, advantageous geographic positioning, affordable labour expenses, and an emphasis on niche vessel categories. Essential policy measures like the Maritime India Vision 2030, the Shipbuilding Financial Assistance Policy, and the Sagarmala Program are advancing infrastructure growth and improving competitiveness. Labour expenses in India are considerably cheaper than in top shipbuilding countries such as China, South Korea, and Japan, offering a financial edge. Furthermore, investments in upgrading shipyards, digital innovations, and eco-friendly shipbuilding options such as electric ferries and hydrogen fuel cells are establishing India as a frontrunner in sustainable maritime solutions. These interconnected elements are driving swift expansion and setting India up to emerge as a significant global contender in the shipbuilding industry.

India has designated almost 15,000 acres in five coastal states, Odisha, Andhra Pradesh, Tamil Nadu, Gujarat, and Maharashtra, for a significant shipbuilding project, with Maharashtra having the largest allocation and Tamil Nadu concentrating on eco-friendly vessel production and a green hydrogen centre. The projected expenditure for constructing 207 ships is approximately ?1.5 lakh crore, backed by funding, wages, and subsidies per vessel, along with incentives for skills enhancement and research and development.

Restraining Factors

Despite significant expansion, the market suffers from some obstacles, such as infrastructure deficiencies, high capital intensity, and low global competitiveness limit India's shipbuilding industry. Also, new entrants are hampering the industry revenue, such as inconsistent policy backing and regulatory impediments, which tend to slow the establishment as an Asian shipbuilding giant and restrict India’s export potential.

Market Segmentation

The India shipbuilding market share is classified into type and end use.

• The offshore/special purpose vessels segment held a substantial share in 2024 and is expected to grow at a notable CAGR during the forecast period.

The India shipbuilding market is segmented by type into merchant ships, naval/defence ships, passenger ships, offshore/special purpose vessels, yachts & recreational vessels. Among these, the offshore/special purpose vessels segment held a substantial share in 2024 and is expected to grow at a notable CAGR during the forecast period. The development of the global supply chain and increased international trade are driving greater demand for cargo ships. This category includes LNG carriers, offshore support vessels, research vessels, and heavy-lift ships. Moreover, cargo must be transported globally, necessitating new and more efficient vessels.

• The military use segment held a significant share in 2024 and is projected to grow at a rapid pace over the forecast period.

The India shipbuilding market is segmented by end use into commercial use and military use. Among these, the military use segment held a significant share in 2024 and is projected to grow at a rapid pace over the forecast period. This is due to the high need for military shipbuilding is the need to safeguard national security and maintain a powerful defence posture. Moreover, country highly invest in naval assets to protect their maritime boundaries, secure shipping channels, and project power globally. The market for military vessels is driven by rising geopolitical tensions and regional conflicts.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the India shipbuilding market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Cochin Shipyard Limited (CSL)
• Garden Reach Shipbuilders & Engineers (GRSE)
• Larsen & Toubro Shipbuilding
• Swan Defence and Heavy Industries (SDHI)
• Bharati Defence and Infrastructure Limited (BDIL)
• Chowgule and Company Pvt. Ltd
• Reliance Naval and Engineering Limited
• Mazagon Dock Shipbuilders
• Goa Shipyard Limited
• Hindustan Shipyard Limited
• other

Recent Developments:

• In December 2025, Russia’s Delo Group, one of the country’s largest transport and logistics companies, planned to develop terminals on India’s inland waterways and strategic ports. This initiative was part of strengthening India–Russia trade connectivity, particularly in logistics and maritime infrastructure.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at India, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the India shipbuilding market based on the below-mentioned segments:

India Shipbuilding Market, By Type

• Merchant Ships
• Naval / Defence Ships
• Passenger Ships
• Offshore / Special Purpose Vessels
• Yachts & Recreational Vessels

India Shipbuilding Market, By End Use

• Commercial Use
• Military Use

FAQ

1. What is the expected growth rate of the India Shipbuilding Market?

The India Shipbuilding Market is expected to grow at a CAGR of 4.70% during the forecast period 2025–2035, driven by government policies, technological advancements, and rising demand for both commercial and military vessels.?

2. What are the major segments in the India Shipbuilding Market?

The market is segmented by type into merchant ships, naval/defence ships, passenger ships, offshore/special purpose vessels, and yachts & recreational vessels. By end use, it is divided into commercial and military segments, with offshore/special purpose vessels and military use holding significant shares.?

3. What are the key drivers of the India Shipbuilding Market?

Key drivers include robust government support (Maritime India Vision 2030, Shipbuilding Financial Assistance Policy), cost advantages (lower labour costs), technological innovation (3D printing, green vessels), and increasing global demand for eco-friendly and specialised vessels.?

4. What are the main challenges facing the India Shipbuilding Market?

Challenges include infrastructure deficiencies, high capital requirements, regulatory hurdles, and competition from established shipbuilding nations like China, South Korea, and Japan. These factors currently limit India’s global market share.?

5. Which are the leading companies in the India Shipbuilding Market?

Major players include Cochin Shipyard Limited (CSL), Garden Reach Shipbuilders & Engineers (GRSE), Larsen & Toubro Shipbuilding, Swan Defence and Heavy Industries (SDHI), Bharati Defence and Infrastructure Limited (BDIL), Mazagon Dock Shipbuilders, and others.?

6. What is the government’s role in boosting the shipbuilding sector?

The government has approved a ?69,725 crore package to revitalise the sector, designated nearly 15,000 acres for shipbuilding clusters, and launched initiatives like the Sagarmala Program and Maritime India Vision 2030 to enhance infrastructure and competitiveness.?

7. What is the market size forecast for India Shipbuilding?

The sector is projected to grow substantially, with estimates suggesting the market could reach $8 billion by 2033, up from $1.12 billion in 2024, reflecting a CAGR of around 60% in the near term and sustained growth through 2035.?