India and South Korea explore strategic shipbuilding partnership for global markets

India and South Korea are moving toward a deeper maritime and shipbuilding partnership, with both nations exploring how Korea’s advanced shipbuilding technologies can be paired with India’s expanding manufacturing capabilities and cost competitiveness to serve domestic and international markets.

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri shared details of the discussions after meeting senior leaders of major Korean shipping companies on Friday. In a post on X, he said the talks focused on leveraging complementarities between the two countries to support India’s rising maritime needs and strengthen its position in global ship supply chains.

Puri noted that India’s energy imports—valued at more than USD 150 billion annually—are entirely seaborne, underscoring the vast demand for ships and offshore vessels. The oil and gas sector alone accounts for 28% of India’s total trade volume, yet only around one-fifth of this cargo is transported on Indian-flagged or Indian-owned ships. With demand for crude oil, LNG, LPG, and ethane projected to rise sharply and ONGC expected to require nearly 100 offshore service and platform supply vessels by 2034, Puri said partnering with global shipbuilding leaders will be essential to expanding domestic capacity.

During his visit, 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. The discussions also highlighted the strategic alignment between India’s growing energy requirements and the expansion of its shipping ecosystem.

India’s shipbuilding ambitions have gained renewed momentum following the launch of a comprehensive set of maritime and shipbuilding reforms in September 2025. These include a ₹69,725 crore package aimed at strengthening the industry through financial support, capacity-building, and cluster development initiatives.

Key components include:

• Shipbuilding Financial Assistance Scheme with an allocation of ₹24,736 crore, offering financial support, credit notes for ship-breaking, and incentives under the National Shipbuilding Mission.
• Maritime Development Fund worth ₹25,000 crore, designed to spur investment and offer interest incentives for shipyard expansion.
• Shipbuilding Development Scheme with an outlay of ₹19,989 crore, providing capital support, risk coverage, and assistance for developing shipbuilding clusters.

India’s maritime heritage stretches back thousands of years, with archaeological remains at Lothal in Gujarat pointing to one of the world’s earliest tidal docks. Today, shipbuilding continues to be described as the “mother of heavy engineering” due to its ability to drive extensive economic ripple effects—every investment generates 6.4 times more employment and yields 1.8 times returns on capital, according to industry estimates.

With the sector offering significant potential for job creation in coastal and rural regions, the government views shipbuilding as a critical pillar of the Atmanirbhar Bharat (self-reliant India) vision. The emerging collaboration with South Korea is expected to accelerate India’s integration into global shipbuilding supply chains while supporting the country’s strategic and industrial ambitions.