Shipmakers Hyundai, Mitsui, Hanwha Eye JVs with PSUs as Govt Pushes Self-Reliance

Asian shipbuilding giants — South Korea's Hyundai Heavy Industries, Hanwha, and Japan's Mitsui — are reportedly in talks with Indian state-run companies to form strategic joint ventures. These discussions, aimed at boosting India’s ship manufacturing capacity, come as the Narendra Modi-led government pushes for greater "self-reliance" in the sector.

State-run Cochin Shipyard Ltd (CSL) is in talks with Hyundai Heavy Industries to set up a new facility in Kochi, according to a Mint report citing sources. While CSL confirmed that discussions are underway, it did not disclose the partner’s name. A team from Hyundai visited India earlier this year to conduct a preliminary survey for potential investments in the country's shipbuilding sector.

Previously, the Economic Times (ET) reported that Hyundai executives also held discussions with L&T regarding a possible collaboration. The engineering major operates a shipyard in Kattupalli.

The Mint report further noted that South Korean shipbuilder Hanwha is exploring partnerships in India and may invest in a shipbuilding facility near Gujarat’s Kandla Port. Additionally, a team from Japan’s Mitsui OSK Lines is expected to visit India in June to seek local tie-ups. A major shipbuilding deal could be finalized in the coming months, with more likely before the end of the year—part of India’s push to become a global shipbuilding hub alongside South Korea, Japan, and China.

India Wants to Be Top 5 Shipbuilding Nation

The central government has outlined its Maritime India Vision 2030, aiming to push India into the global top 10 in shipbuilding by 2030. Looking further ahead, the Maritime Amrit Kaal Vision 2047 aspires to elevate India into the global top 5 by 2047.

To achieve these targets, the government plans to establish two mega shipbuilding parks—one each on the East and West coasts—by 2030. These parks aim to tap into the $100 billion global shipbuilding market.

A Maritime Development Fund with a corpus of Rs 250 billion (approximately $2.9 billion) is also being set up to provide long-term financing for shipbuilding and repairs. The government will contribute 49% of the fund, with the remainder coming from ports and private players.

Policy reforms are underway to promote shipbuilding clusters, enhance supporting infrastructure, and incentivise vessel construction and scrapping. The government has also extended an import tax exemption on shipbuilding and shipbreaking inputs by 10 years.

India isn’t the only country aiming to revive its shipbuilding sector. Former U.S. President Donald Trump has also made efforts to bring America’s shipbuilding industry back to its former glory, which has been eclipsed by China, South Korea, and Japan.

To that end, Trump imposed fees of up to $1.5 million on Chinese-built ships entering the U.S., and up to $1 million on fleets that either include Chinese-built vessels or have placed orders with Chinese shipyards.