DEFENCE Minister Mr. Rajnath Singh’s assertion of making India a global shipbuilding hub underlines the tremendous potential the sector holds in the future. Once a traditional shipbuilder for a considerable period, India did experience a long lull in the field but now with renewed interest shown by the current dispensation, there is every possibility of emergence of an Indian shipbuilding hub and supply chain when traditional manufacturers are bringing down their production. Mr. Singh’s optimism of taking advantage of the vacuum in the industry is also backed by action on the ground by the Centre.

 

As he laid the foundation for five expansion projects worth Rs 3,500 crore in West Bengal, the Defence Minister sent a message to domestic defence manufacturers that India means business in the industry. The country is seeking to grab the place left open by traditional shipbuilding nations with a major policy-driven revival. India is currently holding one per cent of the global market share but by 2047 it aims to break into the top five global shipbuilding nations. With a sustained reforms package and infrastructure to boost long-term financing, this aim can become a reality even before the set deadline. India holds an advantage in the sector due to its traditional knowledge in shipbuilding. At one time, Indian ships were among the most sailed across the globe with traders mostly depending on shipbuilders from India’s coastal areas to make their own voyages.

 

The same knowledge is coming handy for shipbuilding companies and with the fusion of modern technology, India is emerging as a preferred player in the sector. The five projects in West Bengal are a welcome addition to the cluster ecosystem being developed in Gujarat, Tamil Nadu, Keralam, and Andhra Pradesh. With a large workforce at disposal, an abundant number of steel companies and the brains to adapt to new technology, India can expand these clusters into other coastal parts too to create a major shipbuilding hub in the near future. The dream of becoming a shipbuilding hub and a major supply chain for the world is on the right track but it will need policy revamp soon to sustain the momentum. Like the defence manufacturing in India, the country can always become a regional leader in shipbuilding and tap small and middle economies as a vital part of the supply chain. It will need diversification and robust support from the Centre and the States too. Becoming a leader in the shipbuilding industry is a challenging job. It will need backing on the lines of the semiconductor mission. More importantly, the mission must not get entangled in political slugfest between the Centre and the States.

 

The country has seen on many occasions how big-ticket projects of national importance got delayed due to political differences between the Central Government and respective State Governments. The change of guard in West Bengal has cleared one such major hurdle to launch the shipbuilding projects. As India aims to establish itself as a major player in the shipbuilding industry, the Centre and States must be on the same page. It will need sensitisation about the importance of the projects in national security. The State Governments have an important role to play in the mission as the regions where the cluster ecosystem will be established will be governed and controlled by the local administration. The projects must transcend all political barriers and myopic goals.

 

Another important aspect is enabling private sector companies to become part of the mission. The shipbuilding industry is still dominated by the Public Sector Shipyards under the Ministry of Defence (MoD) and the Ministry of Ports, Shipping and Waterways. While these PSS have played a vital role in shipbuilding, particularly in the development of defence vessels, the nature of commercial shipbuilding might prove challenging to their capacities. Creating domestic champions with full support to private shipbuilders is imperative for the Centre to fulfill the aim of becoming a global shipbuilding hub and start a new supply chain.