A stark divide defines maritime manufacturing between Asia's two largest powers, with global vessel construction heavily skewed toward one player. While China manufactures 55 percent of all ships worldwide, India's contribution stands below a single percent. Sanjeev Sanyal, a member of Prime Minister Narendra Modi's Economic Advisory Council, brought these figures to the forefront, stressing that India urgently needs to step up its domestic shipbuilding capacity and tackle this enormous industrial imbalance head-on.
Foundational Strengths Stifled by Regulatory Frameworks
India already possesses structural strengths that should naturally position it as a major maritime builder. The country boasts an abundant labor pool and ranks as the world's second-largest producer of steel, meaning raw material access and workforce availability are fully secure. However, the existing regulatory ecosystem governing the sector has emerged as a significant bottleneck against expansion. Sanyal pointed out that operational methods and bureaucratic hurdles continue to hold the industry back, emphasizing that creating accessible pathways for private sector investment remains essential to scaling up domestic yards.
Shifting Perspectives From Landlocked Thinking to Maritime Power
A primary hurdle in harnessing India's potential lies in its traditional self-image as a land-dominated nation. Sanyal noted that the country frequently overlooks its maritime reach and fails to appreciate the strategic value of its geography. When viewed through an economic lens rather than a continental one, India behaves almost like an island economy. From this maritime angle, the nation's true commercial neighbors include the United Arab Emirates, Oman, Australia, Singapore, and Indonesia, with which India shares deep historical ties and vital sea lanes that must be prioritized.
Severe Exposure to Overseas Shipping Fleets
The urgency to modernize and expand domestic commercial shipping is tied directly to external trade realities. India relies on sea routes for 95 percent of its trade by volume and 75 percent by overall value. Alarmingly, the vast majority of this maritime movement is managed and owned by international shipping operators. Sanyal cautioned that this extreme reliance places the nation in a vulnerable position, noting that even without formal sanctions from major global powers, an operational boycott or dispute involving just three or four dominant foreign carriers could plunge the country's trade into a severe crisis.
