As the Indian government decided to inject massive policy funds to grow shipbuilding into a national strategic industry, observers say Korea's shipbuilders are poised to benefit. India urgently needs skilled overseas partners to raise its shipbuilding capabilities. Korea has strengths in building high-value-added, eco-friendly ships and has no security issues with India, making it an optimal partner.
According to the shipbuilding industry on the 23rd, major Korean shipbuilders are weighing cooperation plans with Indian shipbuilders. On the 30th of last month, the Indian government approved an investment package worth 697.25 billion rupees (about 1.128 trillion won) to foster shipbuilding. Massive funds will be released for financial support to shipbuilders, the creation of shipbuilding clusters, and the establishment of ship technology centers.
The Indian government has sent a love call to Korean shipbuilders. India has been engaged in a decades-long border dispute with China along the Himalayan frontier, and appears to have sought help from Korea, which has no territorial disputes or military tensions with India. Late last year, a high-level Indian government delegation visited the business sites of HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean in succession to seek cooperation.
Korean shipbuilders expect to secure new markets, export marine equipment, and ease labor shortages by entering India. In July this year, HD Korea Shipbuilding & Offshore Engineering signed a comprehensive memorandum of understanding (MOU) for cooperation with Cochin Shipyard Limited, India's largest state-owned shipyard. In the same month, Hanwha Ocean opened a global engineering center in the northern region and is considering several ways to cooperate. Last month, Samsung Heavy Industries signed an MOU with Swan Shipyard in northwestern India for cooperation in shipbuilding and offshore businesses.
India is nurturing its shipbuilding industry on the back of abundant labor and strong government support. This is similar to the path China's shipbuilding industry took to grow. Some predict that India will one day emerge as a competitor to Korea, but as of last year, India's share of the global shipbuilding market was 0.06%, still negligible. Indian shipbuilders currently win orders mainly for small container ships by offering low prices.
A shipbuilding industry official said, "From India's perspective, Korean shipbuilders are the optimal partners who help strengthen the country's shipbuilding capabilities without posing a military threat," adding, "We are considering various entry options, including new investment and workforce development."