In an interview with ETManufacturing, Vivek Merchant, Director at Swan Defence and Heavy Industries Limited (SDHI), discusses India’s ambitious goals to become a leading global shipbuilding powerhouse by 2047. Merchant highlights the crucial role of technological advancements and digital transformation in enhancing the efficiency and competitiveness of Indian shipyards.
The Indian shipbuilding sector is embracing automation and digitalization through technologies like robotic welding, CNC machining, and advanced simulation tools. These innovations are essential for maintaining high production standards and meeting the growing demands of the maritime industry. However, Merchant emphasizes that all shipyards must upgrade their infrastructure to keep pace with global developments in shipbuilding.
Merchant identifies several bottlenecks hindering India’s progress in becoming a global shipbuilding hub. A significant challenge lies in the need for an integrated maritime ecosystem that promotes collaboration among shipyards, suppliers, logistics, and R&D facilities. Additionally, reducing dependency on imported materials is critical, as reliance on foreign sources raises production costs and supply chain vulnerabilities. Furthermore, attracting domestic manufacturing of new vessels is essential to improve market competitiveness.
For private shipbuilders, financing poses a substantial hurdle. Indian firms often encounter high interest rates compared to global competitors, limiting their ability to invest in essential infrastructure and technology. Additionally, supply chain challenges, a shortage of skilled labor, and limited R&D capabilities further complicate the landscape.
The Indian government has undertaken several policy reforms to support the shipbuilding sector, such as revamping financial assistance programs and launching significant maritime funds. These initiatives indicate a strong commitment to unlocking the industry’s potential. To build a globally competitive shipbuilding infrastructure, Merchant recommends further government support in the form of affordable financing and streamlined regulatory processes.
Merchant asserts that a comprehensive policy approach is necessary for India to ascend as a global leader in shipbuilding. This includes simplifying regulations, bolstering the supply chain, and enhancing access to finance. The government’s Shipbuilding Financial Assistance Policy, which provides subsidies based on the type of vessel constructed, is a key component but requires more clarity to be effective.
Regarding defense manufacturing, the Atmanirbhar Bharat initiative has significantly impacted shipbuilding by allocating a substantial portion of the defense budget for domestic procurement and creating a favorable environment for private sector participation. With increasing geopolitical tensions, the demand for advanced naval and defense vessels is on the rise, presenting India with a strategic opportunity to modernize its shipbuilding capabilities.
Overall, for Indian companies to thrive in the global defense manufacturing space, they must invest heavily in R&D, forge global partnerships, and establish a transparent regulatory framework. Merchant foresees substantial growth in India’s defense shipbuilding market, supported by government initiatives and an increasingly capable domestic shipyard ecosystem.
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