India's shipbuilding industry is growing rapidly as orders increase with government support. Analysts say Korean shipbuilders, which are struggling with high labor costs and a shortage of production bases, could find opportunities to resolve difficulties through cooperation with India.
On the 2nd (local time), India's Rediff reported that Garden Reach Shipbuilders & Engineers (GRSE) posted a record high revenue of 64 billion rupees (about 1.0412 trillion won) for the 2025–2026 fiscal year (April 2025–March 2026), up 26% from a year earlier.
Another major Indian shipyard, Mazagon Dock Shipbuilders (MDL), saw its revenue for the 2024–2025 fiscal year increase 25.9% compared with the 2022–2023 fiscal year. The compound annual growth rate and operating margin expected through 2028 are in the low 10% range and the high 10% range, respectively.
Order backlogs are also ample. MDL's order backlog stood at 274 billion rupees (about 4.4552 trillion won) as of the second quarter of the 2026 fiscal year. The order backlog at Cochin Shipyard Limited (CSL), India's largest state-run shipyard, which is collaborating under an agreement with HD Hyundai, also reaches 230 billion rupees (about 3.7421 trillion won).
Many analysts attribute the revenue growth of Indian shipyards to naval expansion. GRSE built and delivered eight warships ordered by the Indian Navy in the last fiscal year and is said to be in talks for additional contracts. As of last year, the Indian Navy presented a roadmap to expand its fleet of warships and submarines from about 140 vessels to 200 by 2035.
Future orders are also expected to increase. Competition to strengthen naval power among neighboring countries such as China and Pakistan in the Indian Ocean is intensifying, making it likely that the government will continue placing orders for military vessels.
The Indian Navy accounts for about 21% of total defense expenditure. Final talks are underway for three Scorpène-class submarines worth more than 100 billion rupees (about 16.24 trillion won), and projects for frigates, destroyers, and landing ships are also planned, pushing the total project scale over the next 10 years to more than 300 billion rupees (about 48 trillion won). In 2029, there is reportedly a possibility of ordering a second aircraft carrier worth about 45 billion rupees (about 7.308 trillion won).
Orders in the global market are also on the rise. Cochin Shipyard Limited recently won a contract worth 32.4 billion rupees (about 526.1 billion won) from France's CMA CGM, the world's No. 3 container shipping company, to build six liquefied natural gas (LNG) container ships. HD Hyundai Heavy Industries is also said to have participated in this deal. GRSE is building 13 vessels ordered by a German client, and MDL signed memorandums of understanding with the Brazilian Navy and a French naval defense company.
The shipbuilding industry also cites ordering countries' supply chain diversification strategies as a recent driver of India's growth. As global dependence on Chinese ships has increased, many countries, including those in Europe, are turning to India, which can build ships at lower expense, due to security concerns over China.
In fact, Rodolphe Saadé, CEO of France's CMA CGM, which placed its first ship order in India, said, "The goal is to diversify the supply chain to other countries' shipyards," adding, "It has been proven that India can be that option."
Some say India's growth could be an opportunity for Korea's shipbuilding industry. India's market share in the global market is still minimal, so the impact on Korean companies is limited. On the other hand, there is significant potential for expanded cooperation in various areas such as technology and investment.
Last year, Indian shipyards held a 0.11% share of the global market by order volume, ranking 17th in the world. That is too low to be seen as a competitor to Korea (11.96%) and China (39.32%). Japan and the United States have market shares of 3.65% and 0.44%, respectively. The core market also differs, with India focusing on small vessels, while Korea centers on large, high value-added ships.
Meanwhile, cooperation with Korea is gaining momentum. HD Hyundai signed a memorandum of understanding (MOU) with Cochin Shipyard Limited, India's largest state-run shipbuilder, to join the Indian government's "Maritime Amrit Kaal Vision 2047" initiative last year. In January, Chairman Chung Ki-sun met with Prime Minister Narendra Modi to discuss ways to expand cooperation. HD Hyundai is also pursuing the construction of a new shipyard in Tamil Nadu state.
An industry official said, "India also expressed its willingness to provide land amounting to three to five times the size of existing Korean shipyard sites." The official added, "Korean shipbuilders face the tasks of boosting price competitiveness due to a shortage of production bases relative to abundant orders and high labor costs, and cooperation with India will help resolve these challenges and find new growth drivers."