India’s $23bn Shipbuilding Push: Korea and Cyprus Back 2047 Maritime Hub
India secures South Korean and Cypriot partnerships to build 400 vessels worth $23bn by 2036.
India has set an ambitious goal to become a leading global maritime hub by 2047, leveraging recent agreements with South Korea and Cyprus to strengthen its shipbuilding, green technology, and port infrastructure sectors. The initiative is backed by a $7.8 billion government support package, approved in September 2025, which aims to attract international investment and foster joint ventures in key maritime industries.
During a visit to Busan, South Korea, on October 27, India’s Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, held a series of high-level meetings with South Korean maritime institutions, shipbuilders, and shipping companies. The discussions focused on expanding collaboration in shipbuilding, marine equipment manufacturing, green technology, and port development.
Sonowal engaged with Sejin Heavy Industries, where CEO Kim Jin-jong explored potential joint ventures in the production of LPG and LNG cargo tanks, cryogenic structures, and large ship blocks. The minister also met with Yang Won-chang, president of the Korea Marine Equipment Research Institute (KOMERI), to discuss partnerships in testing, certification, green propulsion, and smart technology. Sonowal proposed a collaboration between KOMERI and India’s Ship Technology Centre (ISTC), inviting Korean equipment manufacturers to visit India to explore technical and industrial opportunities.
HMM
Strategic Partnerships with South Korea and Cyprus: India
Representatives from South Korea’s leading shipping line, HMM, led by Senior Executive Vice President Jay Y. Lee, expressed interest in investing in India-flagged vessels, the upcoming Vadhvan Port, and domestically manufactured containers. Additionally, Sonowal discussed investment opportunities in Indian port infrastructure with Ahn Byung-gil, CEO of the Korea Ocean Business Corporation.
In parallel, Marina Hadjimanolis, Cyprus’ Deputy Minister of Shipping, voiced support for India’s bid to gain EU recognition for ship recycling. Hadjimanolis announced that around 25 Cypriot companies plan to visit India in November to explore potential partnerships, further solidifying bilateral maritime ties.
Long-Term Maritime Growth Plans
India’s maritime strategy is built on a 10-year demand pipeline of over 400 vessels, valued at approximately $23 billion. This pipeline includes orders from public-sector agencies and domestic requirements, positioning India as a key player in global shipbuilding and shipping services.
The government has introduced financial mechanisms, such as the Maritime Development Fund (MDF) and Sagarmala Finance Corporation (SMFC), to attract investment in port infrastructure and shipping projects. These initiatives aim to create large shipbuilding clusters and enhance India’s competitiveness in the global maritime sector.
Beyond shipbuilding, India is prioritizing green shipping and sustainability. The country seeks to align its ship recycling practices with EU standards, a move that could open doors for Indian yards to handle European-flagged vessels. Cyprus’ endorsement of India’s EU recognition bid is expected to accelerate this process, reinforcing India’s commitment to environmentally responsible maritime operations.
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