India Seeks Korean Partnership for $8 Billion Shipbuilding Opportunity
Union Minister Hardeep Singh Puri has revealed that India’s energy PSUs require nearly 59 new vessels with an annual freight spending of $5-8 billion, creating massive opportunities for global shipbuilding leaders like South Korea’s Hanwha Ocean.
Key Takeaways
- India needs 59 vessels immediately for energy transportation
- Energy PSUs spend $5-8 billion annually on freight
- Vessels built through collaboration can recover costs in 5 years
- Comprehensive government incentives available for shipbuilders
Strategic Visit to Hanwha Ocean
During his visit to Hanwha Ocean’s Geoje facility from November 13-15, 2025, Minister Puri explored opportunities to deepen maritime cooperation between India and South Korea. The visit aligns with India’s that aims to significantly scale up the country’s commercial fleet capacity and enhance domestic shipbuilding infrastructure.
Complementary Strengths
“Korea has the technological expertise and experience in ship construction, while India offers strong demand, skilled manpower and supportive policies,” Puri stated. He emphasized that this partnership model under the Make in India initiative can help build vessels not only for domestic needs but also for global markets.
Comprehensive Government Support
The Indian government has introduced robust measures to accelerate domestic shipbuilding:
- 15-25% capital support for vessels constructed in India
- Additional 5% incentive for ship recycling activities
- Marine Development Fund for equity financing
- 3% interest subvention scheme
- Infrastructure support for new greenfield shipyards
High-Level Discussions
The facility visit followed Minister Puri’s meeting with Kim Hee-Cheul, President and CEO of Hanwha Ocean, in Seoul. Both leaders discussed collaboration opportunities in vessel construction, maritime technologies, and potential investments that could contribute to India’s shipbuilding ambitions under the initiative.
