India needs decade-long vessel procurement plan to boost shipbuilding sector

The EY-FICCI study underscores the need for long-term visibility in vessel orders to transform India's shipbuilding landscape and enhance its competitive position in global maritime markets. By implementing a structured procurement roadmap spanning a decade, the country can attract sustained investment in shipyard infrastructure and create predictable demand for domestic suppliers.

The report identifies improved demand visibility as critical to stabilizing the sector's growth trajectory. A multi-year procurement commitment would enable shipbuilders to plan capacity expansions, invest in advanced manufacturing technologies, and develop skilled workforce capabilities with greater confidence. This structural support is essential for yards to compete effectively with established international competitors.

Strengthening maritime financing mechanisms represents another key recommendation from the joint analysis. A long-term vessel procurement schedule would provide lenders and financial institutions with clearer risk assessments, potentially unlocking greater credit availability for shipbuilders and supporting the sector's capital requirements.

The domestic supply chain emergence stands as a significant potential benefit of the proposed pipeline. Extended procurement visibility would encourage ancillary industries—from steel fabrication to engine manufacturing—to establish or expand operations within India, building integrated industrial ecosystems and creating employment opportunities across maritime-related sectors.

The recommendations align with India's broader maritime development agenda and efforts to establish the country as a hub for ship construction and repair services in South Asia.