India–South Korea Shipbuilding Partnership: Can Sonowal’s Busan Visit Accelerate India’s Maritime Ambitions?

Logisticswall | Shipbuilding & Global Trade | 26 October 2026

India aims to become one of the world’s five leading shipbuilding nations by 2047. Achieving this goal will require advanced technology, skilled workers, modern shipyards and competitive production costs. South Korea, a global shipbuilding leader, could play a crucial role in closing these gaps.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal’s visit to Busan on 25 October 2026 highlights India's growing efforts to combine domestic industrial capacity with Korean shipbuilding expertise.

VOYAGES: A framework for cooperation

The partnership builds on the VOYAGES framework established during South Korean President Lee Jae Myung’s state visit to India on 20 April 2026. It focuses on three priorities: developing new shipbuilding clusters, upgrading existing Indian shipyards and strengthening the wider maritime manufacturing ecosystem.

A key development was the memorandum of understanding signed on 20 April between HD Korea Shipbuilding & Offshore Engineering (HD KSOE), National Shipbuilding & Heavy Industries Park, Tamil Nadu Ltd and SM Finance Corporation Ltd for a proposed mega greenfield shipyard at Thoothukudi, Tamil Nadu. The project remains subject to further implementation and investment decisions.

₹69,725 crore to support shipbuilding growth

In September 2025, the Union Cabinet approved a ₹69,725 crore shipbuilding package comprising:

• ₹24,736 crore for the extended Shipbuilding Financial Assistance Scheme until March 2036.

• ₹25,000 crore for the Maritime Development Fund, including investment and interest-incentivisation components.

• ₹19,989 crore for the Shipbuilding Development Scheme to expand domestic capacity, support shipbuilding clusters and establish an India Ship Technology Centre.

The government projects that the programme could support annual capacity of 4.5 million gross tonnage, generate nearly 30 lakh jobs and attract approximately ₹4.5 lakh crore in investment. These are targets, not realised outcomes.

Skills, technology and industrial partnerships

On 2 April 2026, India's shipping ministry signed a Plan of Implementation with the Korea International Cooperation Agency (KOICA) to assess workforce gaps and develop a roadmap for shipbuilding and marine-engineering skills. Proposed cooperation includes vocational training and technology transfer, with potential applications in modular construction, automation and digital shipbuilding.

Industry-level cooperation is also advancing. Cochin Shipyard Limited signed an MoU with HD KSOE in July 2025 covering newbuilding opportunities, technical expertise, productivity and workforce development. A separate agreement in September 2025 concerned the use of CSL's 310-metre dry dock at Bhavnagar for large vessels, with a stated ambition of up to six vessels annually.

What comes next?

The partnership's success will depend on translating agreements into operational results. The priorities are securing binding investment commitments, attracting commercial vessel orders, training skilled workers, developing local component suppliers and achieving delivery costs and schedules competitive with established shipbuilding centres in China, South Korea and Japan.

The Logisticswall perspective

India has the policy support, funding framework and opportunity to expand its shipbuilding industry. South Korea brings proven manufacturing expertise and advanced production capabilities.

The strategic opportunity is to turn this combination into a globally competitive Indian maritime manufacturing base.

The real test will not be the number of agreements signed, but the number of ships built in India, delivered on time and sold competitively in the global market.

Logisticswall | Global Shipping, Trade & Maritime Intelligence