As global demand for ships increases due to expanding maritime trade and modernisation of naval fleets, South Korea is exploring collaborations with Indian shipyards to meet its growing order book. The partnership discussions come at a time when the sector holds significant national security implications. A high-level delegation from South Korea's Hanwha Ocean Co Ltd, led by Senior Vice President Jin Su Lee, visited India to engage with officials from key Indian shipyards, including Pipavav Shipyard (operated by Swan Defence and Heavy Industries Ltd), Cochin Shipyard Ltd, Hindustan Shipyard Ltd, and L&T Shipbuilding Ltd. The delegation also met with officials from the Ministry of Ports, Shipping, and Waterways to discuss potential partnerships. South Korea’s shipyards, which are fully booked until 2028, are seeking to collaborate with India, which aspires to become one of the top 10 global shipbuilders by 2030, with a vision to rank in the top five by 2047. Over the next three decades, more than 50,000 ships are expected to be built worldwide. Currently, India holds less than 1% of the global shipbuilding market share. India’s Ministry of Ports, Shipping and Waterways (MoPSW) is looking to South Korea and Japan for investments and technology transfers, aiming to establish shipbuilding and repair clusters in India. States like Andhra Pradesh, Gujarat, and Odisha have already shown interest in developing such clusters. South Korea’s shipbuilding industry is dominated by three major players: Samsung Heavy Industries, Hanwha Ocean, and HD Hyundai Heavy Industries. In 2024, these companies secured massive orders, with Samsung Heavy Industries, Hanwha Ocean, and HD Hyundai Heavy Industries winning contracts worth $12.1 billion, $5.7 billion, and $4.9 billion respectively for over 150 vessels. China, the world leader in shipbuilding for 14 consecutive years, currently holds 62.9% of global shipbuilding orders. The country’s shipyards, which are focused on complex ships like gas carriers, have been revitalised by a surge in orders. In contrast, South Korea leads in high-value markets such as LNG carriers and eco-friendly technologies. To counter China’s dominance, the United States has sought to strengthen its shipbuilding capacity through partnerships with allies like South Korea, Japan, and India. India has already entered agreements with US shipyards for auxiliary ship repairs. Despite having 28 domestic shipyards, India struggles to produce large-scale commercial vessels. Around 95% of India’s shipping trade is conducted using foreign-owned ships, with about 60% of the country’s ship repair work happening abroad. In response, India has proposed a Rs 250 billion Maritime Development Fund (MDF) to support indigenous shipbuilding. The fund will offer long-term, low-cost financial backing for the sector, addressing the lack of financing for shipping operations in India. The Indian government is also working on a new shipbuilding policy set to take effect in 2026, with sustainability at its core. The policy will provide financial incentives for vessels powered by green fuels and hybrid propulsion systems, aiming to foster India’s participation in the green shipping industry. Additionally, India is considering introducing purchase preference for vessels built domestically, mandating that any new ships for coastal cargo transport be built at Indian shipyards starting in fiscal year 2031. (eurasiantimes)