The $75 billion drain: How India lost the global shipping race and the bold mission to reclaim it

Subscribe to enjoy similar stories. Chennai/Kochi: The divergence is stark. Both Cochin Shipyard Ltd (CSL) and HD Hyundai Heavy Industries were established the same year—1972.

In 53 years, the South Korean company has become the largest shipbuilding entity in the world with revenue of $9.85 billion (2024). A few weeks ago, it delivered its 5,000th vessel—a patrol frigate for the Philippines navy. On the other hand, CSL, India’s largest shipbuilder, is a fraction of that size.

It generated revenue of about $550 million in 2024-25 and had only built 241 vessels till March this year. India, once a maritime super power, has lost its way and has fallen off the global shipping map. Its share in shipbuilding is a paltry 0.06% of global output measured in terms of gross tonnage.

It is ranked 20th in the world. In terms of ship ownership, India is ranked 22nd with an overall share of 0.7%. Just 1,150 of the 60,000 oceangoing cargo vessels are registered in India.

Foreign ships carry 92% of India’s total trade and are paid $75 billion annually for it. This amount, Prime Minister Narendra Modi recently pointed out, is more than India’s defence budget. Three recent events have jolted the Indian government into action.

First was the covid-19 pandemic that disrupted the global supply chain. Indian exporters found it extremely difficult to move cargo as foreign vessels avoided Indian ports. That was followed by the Russia-Ukraine war.

The US sanctions complicated India’s efforts to buy and move crude from Russia. And then, the Red Sea crisis erupted—Yemen-based Houthis started targeting Western ships forcing them to take a long detour around Cape of Good Hope. Indian ships remained unaffected, but there weren’t enough of them available