The industry as it stands today

Shipbuilding involves engineering and fabrication of ships at specialised facilities known as shipyards. This process includes the conceptual design, structural assembly and installation of propulsion and navigation systems, and safety equipment.

Ship repair, on its part involves maintenance, repair, overhaul and modification of ships to ensure their operational efficiency and compliance with safety regulations.

Over the past few decades, the global shipbuilding industry has shifted from European countries to Asia, primarily South Korea, Japan and China, on the back of lower labour costs. Besides the labour cost advantage, immense government support has helped the Asian countries establish their dominance in the industry.

India is a nascent player in this industry. While it has emerged as an important supplier, the country accounts for less than 2% of the global share today. In the next few decades, however, India is set to emerge as a key player in both shipbuilding and ship repair, powered by cost-competitiveness, availability of skilled manpower, locational advantage and government support.¹