India, South Korea Weigh Shipbuilding Tie-Up for Industry Growth

• India and South Korea deepen shipbuilding partnership for growing market needs.
• Puri stresses rising energy imports and the urgent requirement for Indian vessels.
• The government launches major reforms and funding to boost domestic shipbuilding.

India and South Korea explored how integrating Korea's cutting-edge shipbuilding technologies with India's manufacturing capabilities and cost-effectiveness can create a beneficial partnership that addresses India's growing domestic demands and international ship markets.

In a post on social media platform X, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri stated that he had a fruitful discussion with leaders of Korea's top shipping companies.

In the post he wrote, "We also discussed how the combination of Korea's advanced shipbuilding technologies and India's manufacturing base and lower production costs will lead to a mutually beneficial partnership that can serve our rising domestic needs as well as global markets for ships."

"Our crude and gas imports worth over USD 150 billion are seaborne, reflecting the scale of our energy and shipping vessel demand. The oil & gas sector alone accounts for nearly 28 percent of India's total trade by volume, making it the single largest commodity group at our ports. Yet, only around 20 per cent of this cargo is carried on Indian-flagged or Indian-owned vessels. With India's demand for crude oil, LPG, LNG, and ethane rising rapidly, and ONGC alone projected to require nearly 100 offshore service and platform supply vessels by 2034, there is a strong impetus for us to build ships in India in partnership with global leaders," the post added.

The minister met with An Byung Gil, CEO of Korea Ocean Business Corporation (KOBC), Kim Sung Ick, CEO of SK Shipping, Seo Myung Deuk, CEO of H-Line Shipping, and Sung Je Yong, Vice President of Pan Ocean.

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India's shipbuilding sector is set for international recognition as the government announced Rs 69,725 crore shipbuilding and maritime reform initiatives in September 2025. Additionally, the Shipbuilding Financial Assistance Scheme, with a budget of Rs 24,736 crore, offers financial aid, ship-breaking credit notes, and promotes domestic production via the National Shipbuilding Mission.

The government has created the Maritime Development Fund with a budget of Rs 25,000 crore, aimed at promoting investment and incentivizing interest. The Shipbuilding Development Scheme offers financial assistance, risk protection, and skill enhancement for shipbuilding clusters, with an investment of Rs 19,989 crores.

India's maritime industry has traditionally acted as a crucial bridge linking the subcontinent to worldwide trade routes, with centuries of navigation and trade influencing its economic base. India's shipbuilding history traces back to the Indus Valley Civilization, with archaeological discoveries in sites such as Lothal (now in Gujarat) revealing signs of dockyards and maritime commerce.