India, South Korea Explore Strategic Shipbuilding Partnership

India and South Korea are exploring a strategic partnership that aims to combine South Korea’s cutting-edge shipbuilding expertise with India’s growing manufacturing capabilities and cost advantages. The collaboration is expected to support India’s rising demand for vessels while strengthening both nations’ positions in the global maritime market.

Petroleum and Natural Gas Minister Hardeep Singh Puri announced on social media that he held a productive meeting with senior executives from leading South Korean shipping companies. Discussions focused on how a joint approach to shipbuilding could help India meet its expanding requirements and cater to international markets. India currently imports more than USD 150 billion worth of crude oil and gas via sea routes, highlighting the scale of its maritime needs.

Although the oil and gas sector accounts for nearly 28% of India’s total trade by volume, only about 20% of this cargo is transported by Indian-flagged or Indian-owned vessels. With demand for crude oil, LPG, LNG, and ethane expected to rise sharply—and ONGC alone projected to require nearly 100 offshore service and supply vessels by 2034—India is seeking global partnerships to accelerate domestic shipbuilding.

During his visit, the minister met with CEOs from Korea Ocean Business Corporation, SK Shipping, H-Line Shipping, and Pan Ocean. He emphasised that energy and shipping form critical pillars of India’s rapidly expanding economy under the leadership of the Prime Minister.

India’s shipbuilding ambitions have received a significant boost with the government’s recent announcement of maritime and shipbuilding reforms worth ₹69,725 crore. These include the ₹24,736-crore Shipbuilding Financial Assistance Scheme to promote domestic shipbuilding and ship-breaking, a ₹25,000-crore Maritime Development Fund to drive investment, and the ₹19,989-crore Shipbuilding Development Scheme to provide capital support, risk coverage, and capacity-building for shipbuilding clusters.

India’s maritime heritage stretches back to the Indus Valley Civilization, with archaeological sites such as Lothal in Gujarat showcasing some of the world’s earliest known dockyards. Today, the shipbuilding industry—often described as the “mother of heavy engineering”—continues to play a vital role in economic growth, job creation, and national security. Industry estimates suggest that every rupee invested in shipbuilding generates 1.8 times economic returns and creates 6.4 times more employment opportunities.

The development of India’s maritime and shipbuilding ecosystem is central to the Atmanirbhar Bharat vision, with the potential to generate large-scale employment across coastal, rural, and remote regions while advancing India’s status as a global shipbuilding hub.