Plan to establish a large shipyard in Tuticorin, Tamil Nadu
Korean shipbuilders receive business participation love calls
Indian government offers investment incentives aiming to become the world’s 5th largest shipbuilding power

Indian government secures sites to create large-scale shipbuilding and ship repair clusters, kicking off a full-scale shipbuilding industry development strategy. Especially, by fostering cooperation with Korean shipbuilders like HD Hyundai Heavy Industries and Hanwha Ocean, it is seen as strengthening the revival of the "K-Shipbuilding Renaissance."

India requests shipbuilding cooperation with Korea, sends love calls to HD Hyundai

On the 13th (local time), India’s leading economic paper The Economic Times reported, quoting Indian government officials, that the government has confirmed large-scale sites for building shipyards and ship repair facilities in strategic coastal areas such as Tamil Nadu and Andhra Pradesh in the south, and Gujarat in the west. It is expected that joint ventures between global shipbuilders, including HD Hyundai Heavy Industries, and local companies will be established in these regions.

The most notable area is the port city of Tuticorin in Tamil Nadu. HD Hyundai Heavy Industries is reportedly in final negotiations with India’s state-run Cochin Shipyard Limited (CSL) to establish a joint shipyard for building large vessels including ultra-large crude carriers (VLCCs), with investments expected to total around 100 billion rupees (approximately 1.6 trillion KRW).

A source explained, “HD Hyundai Heavy Industries, which already owns shipyards in Korea, is very eager to build a shipyard in India to meet rising demand. They have visited Tuticorin and Kudalur in Tamil Nadu and met with executives from Larsen & Toubro (L&T) to seek partnerships.”

Hanwha Ocean also considering joint venture establishment

This announcement comes at a time when the Indian Ministry of Finance’s Expenditure Finance Committee (EFC) finalized 250 billion rupees (approx. 4.15 trillion KRW) in the 2025–2026 budget, alongside an additional 180 billion rupees (approx. 2.97 trillion KRW) in shipbuilding support measures. These policies aim to provide capital support for building shipbuilding infrastructure, including world-class port facilities.

A senior Indian government official said, “HD Hyundai Heavy Industries and Cochin Shipyard are deciding on the site,” adding that “Tuticorin in Tamil Nadu is expected to be the final location for this large infrastructure project.” Andhra Pradesh and Gujarat have also been designated as strategic hubs. India is currently working hard to attract investments from around the world. The Indian side explained that global shipbuilding companies based in the Netherlands, France, and the Middle East have shown interest in establishing local manufacturing facilities.

In particular, Gujarat is developing a shipyard site near Kandla Port covering about 2,000 acres (approx. 8.1 million square meters) for lease to the private sector. Korean Marine Technology (KOMAC) is involved in this project either directly or indirectly. KOMAC signed an MOU with the Indian company Accurate Industrial Controls, which submitted a sole bid for the Kandla shipyard construction, to provide shipbuilding cluster design consulting and first vessel design.

Hanwha Ocean is also reportedly discussing joint ventures focused on potential investment sites near Kandla Port in Gujarat. Last December, Shri T.K. Ramachandran, Deputy Minister of India’s Ports, Shipping, and Waterways, and Madhu Nair, CEO of Cochin Shipyard, visited Korea, meeting successively with HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries to explore cooperation possibilities.

Favorable winds for K-Shipbuilding

The Indian government has set a goal to rise from holding less than 1% of the global shipbuilding market share currently to becoming one of the top 10 shipbuilding nations by 2030, and one of the top 5 by 2047. To revive the shipbuilding industry, India has devised long-term strategies and offers various incentives. These include annual shipbuilding subsidies of up to 30%, tariff reductions on imported materials, and long-term financial support funds, all designed to foster industry growth. Based on these, India aims to become a global shipbuilding powerhouse.

This is good news for the Korean shipbuilding industry, which has been actively expanding its activities in line with the Trump administration’s focus on cooperation in shipbuilding. India’s cheap labor is seen as a way to prevent Korea’s high labor costs while ensuring quick delivery capabilities.

Previously, on November 7, before his inauguration, then-President-elect Donald Trump said during a call with President Yoon Suk-yeol, “The U.S. shipbuilding industry needs Korea’s help and cooperation.” The presidential office said, “(Trump) knows Korea’s world-class capabilities in warship and vessel construction and believes close cooperation is necessary not only for vessel exports but also for maintenance and repairs, hoping to discuss this more concretely with our president.”

Following this, the U.S. has started groundwork for actual cooperation in shipbuilding. U.S. senators have proposed bills to allow allied countries like Korea to build naval vessels. According to foreign media, Republican Senators Mike Lee and John Curtis jointly introduced the “Navy Readiness Guarantee Act” and the “Coast Guard Readiness Guarantee Act” on the 5th, which would amend the Burns-Toffeyson Act—a law that has blocked foreign companies from building or repairing U.S. naval ships for 60 years. The industry views this as a follow-up action to Trump’s request for cooperation with Korea’s shipbuilding sector.