Context
The country’s shipbuilding industry has to master indigenous marine engine manufacturing capabilities so as to negate technological chokepoints and strengthen its maritime sector, which persistently relies on foreign suppliers. Here, we have discussed in detail about Maritime Aspirations of India.
Current Status and Growth Trajectory
(i) Market Value Surge: The industry expanded from a valuation of $90 million in 2022 to $1.12 billion in 2024. Therefore, Projections show a leap to $8 billion by 2033, reflecting a stronger compound annual growth rate (CAGR) of 60%.
(ii) Global Standing: In spite of this growth, India holds a mere 0.05% (approx) share in the global shipbuilding market. Countries like China, South Korea, and Japan (ahead of us) collectively dominate NINETY FOUR (%) of the market.
(iii) Dependence on Foreign Vessels: India spends around $90 billion annually on sea freight, especially using foreign-owned vessels.
(iv) Marine Engine Dependency: More than 85% of engines above SIX MW on Indian vessels come from just five global OEMs (Original Equipment Manufacturers). These marine engines are not only expensive, but also technologically secure.
(v) India’s Future Plan: India has the aspiration to become a top-five shipbuilding country by 2047. As it is supported by strategic investments and policy support.
Challenges in Building Marine Engines
(i) Technological Gap: Proprietary Electronic Control Units are there in modern marine engines, closed-source software, and IP-restricted components. Also, it enhances procurement reliance and spreads it to diagnostics, updates, and maintenance.
(ii) Import Dependencies: Over 90% of marine engines above 6 MW used in Indian commercial as well as naval vessels come from a few global manufacturers in Germany, Finland, UK, US, and Japan. Marine engines account for an average of 17.5% of a ship’s cost and are central to its performance, emissions, as well as lifecycle.
(iii) Export Control Frameworks: These, like EU Dual-Use Regulation, U.S. Export Administration Regulations (EAR), and Japan’s METI licensing controls, can impose immediate restrictions in the pretext of national security.
(iv) Design Capability Deficit: Modern marine engine design is a multi-parameter optimisation challenge. It balances propulsion efficiency, emissions, structural durability, as well as hybrid integration. No indigenous design capabilities extremely hinder its ability.
(v) Metallurgical Limitations: India’s low capacity of producing required materials like high-chromium steels, nickel-based superalloys, and thermally stable composites, at scale, has hindered its aero-engine programs.
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Government Initiatives & Steps
(i) Shipbuilding Financial Assistance Policy (SBFAP): It plays an important role in encouraging domestic shipyards by providing fiscal aid for specialised vessels, including wind farm installation ships and advanced dredgers.
(ii) Fiscal stimulus: Up to 29-30% subsidy for vessels powered by green fuels like methanol, ammonia, and hydrogen fuel cells.
(iii) Procurement Preference: Ships costing less than ₹200 crores must be sourced from Indian shipyards.
(iv) Infrastructure Status: Better infrastructure status for shipyards ensures access to cheaper long-term capital.
(v) Right of First Refusal (RoFR): The Government give preference to Indian shipyards while giving tenders, ensuring more domestic contracts.
(vi) Indigenous Engine Initiatives: In April this year, the Indian Navy authorised ₹270 crore to Kirloskar Oil Engines Ltd. As it is developing a SIX MW medium-speed diesel engine.
Way Forward
(i) India needs to diversify its innovation ecosystem. Big public and corporate firms alone cannot carry this transformation. The key lies in:
(a) Encouraging marine propulsion-focused startups (b) Supporting them with design-linked incentives and targeted R&D funds (c) Facilitating lab-to-market transitions through institutes like IIT Madras.
(ii) These startups can inject firmness, risk tolerance, and interdisciplinary approaches – all important to engine innovation.
(iii) To empower a better and new ecosystem, India should develop a national framework that comprises:
(a) Dedicated propulsion innovation missions (b) Access to marine-grade testbeds (c) Public procurement guarantees to derisk startup involvement (d) Development and licensing of domain-specific software for combustion and thermodynamic simulation, 3D mechanical design, structural stress analysis, and control system development.
Conclusion
Maritime Aspirations of India are real and rapidly materialising. Updated shipyards, state-of-the-art facilities, and robust government patronage will make the nation ready for a shipbuilding rejuvenation. Though inadequate capacity to design and build indigenous marine engines, India risks building vessels that are Indian in flag, crew, and steel – but foreign in soul.