Why India’s Shipbuilding Pact With South Korea Could Reshape Its Maritime Future
The agreement positions India to strengthen maritime infrastructure while reducing dependence on foreign-built vessels through technology transfer and joint ventures.
Published : April 20, 2026 at 8:04 PM IST
New Delhi: Among the outcomes from the bilateral summit between Indian Prime Minister Narendra Modi and South Korean President Lee Jae Myung held here on Monday is a Comprehensive Framework for Partnership in Shipbuilding, Shipping and Maritime logistics.
This partnership may appear technical at first glance. In reality, it touches the heart of India's long-term economic and strategic ambitions at sea.
For a country that moves nearly 95 per cent of its trade by volume through maritime routes but still plays only a marginal role in global shipbuilding, collaboration with the global leader in shipbuilding signals a decisive shift in how New Delhi views its maritime future.
"Shipbuilding cooperation is a key pillar of our bilateral partnership," P Kumaran, Secretary (East) in the Ministry of External Affairs, said while addressing a special media briefing following the bilateral summit.
"We have announced a Comprehensive Framework for Partnership in Shipbuilding, Shipping and Maritime Logistics encompassing agreed initiatives and the ambitions of both sides in the shipbuilding sector," added Kumaran.
According to the document detailing the partnership, the Indian side briefed the South Korean side about opportunities to set up large-scale greenfield shipbuilding clusters in the country and the incentives available under the Government of India's Shipbuilding Development Scheme as well as incentives provided by relevant state governments and Indian financial Institutions for the same.
"The Indian side invited leading shipbuilders from the ROK (Republic of Korea) as technical and strategic anchors for these clusters through active involvement in design, production engineering, advanced manufacturing, quality and safety frameworks and operation," the document stated.
"The ROK side expressed expectation for the advancement of cooperation based on the participation of the business sector. To this end, both sides took positive note of the collaborations between Korean industries and India, such as the conclusion of a non-binding MOU (memorandum of understanding) among the Korean shipbuilder HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (HD KSOE), the identified cluster developer and facilitator, and the capital provider Maritime Development Fund (MDF) for joint development, financing, implementation, operation of a large greenfield shipyard in southern India. They hoped for early implementation of the project."
The document further stated that India has announced the 400+ vessels acquisition plan by the public agencies in India alone for the foreseeable future with a total value of ₹2.2 lakh crore (~$25 bn) during the India Maritime Week 2025.
"Taking note of the Government of India’s production-based financial support to local manufacturing, the two sides supported the cooperation of relevant industries from India and the ROK to establish an effective cooperation mechanism to channel this demand into bilateral partnerships, enhancing sustainable and resilient shipbuilding industry," it added.
South Korea is the global leader in shipbuilding, known for constructing high-tech, efficient commercial vessels, including large container ships, LNG carriers and specialised offshore platforms. Its shipbuilding industry has long outpaced most rivals in terms of scale, technology and global competitiveness.
India, by contrast, is still building up its shipbuilding base, with ambitions under the ‘Maritime Amrit Kaal Vision 2047’ to evolve into a major shipbuilding nation. While Indian shipyards like Cochin, Mazagon Dock and others have grown, they have not yet achieved global scale or competitiveness across all vessel types.
By partnering with South Korean firms and leveraging their technical expertise, design capabilities and industrial practices, India can accelerate the modernisation and global competitiveness of its shipbuilding sector. This helps India move beyond basic ship repairs or smaller vessels toward higher-value commercial and defence platforms.
A strategic partnership with established Korean shipbuilders can also accelerate skill development among India's workforce, aligning training with global standards.
India's maritime logistics — including port infrastructure, cargo handling and shipping services — is critical to the nation's trade competitiveness. Efficient shipbuilding and maritime logistics support faster turnaround at ports through better knowledge of vessel design and operations, improved shipping services for Indian exporters and importers, enhanced integration into global supply chains.
Deepening cooperation with South Korea on maritime logistics also aligns with India's broader goals to build "hubs of global maritime trade" and link Indian ports with global shipping networks.
India’s naval expansion — including requirements for warships, submarines and auxiliary vessels — is a key element of its maritime security strategy. A stronger domestic shipbuilding capability reduces dependence on foreign suppliers and enhances maritime deterrence.
While the current cooperation is framed economically, technological partnership and industrial collaboration can spill over into defence shipbuilding, offering India leverage to build larger and more complex naval platforms domestically over time.
India has articulated a long-term vision to reduce strategic dependence on external suppliers and build sovereign industrial capabilities, under initiatives such as 'Aatmanirbhar Bharat' (Self-reliant India). Partnering with South Korea, under the Comprehensive Economic Partnership Agreement (CEPA) enhancements, helps India integrate advanced global capabilities while nurturing domestic growth.
Monday's summit also underscored the importance of secure maritime routes and resilient supply chains, partly in response to global geopolitical tensions that can disrupt trade like the ongoing instability around the Strait of Hormuz.
By partnering on shipbuilding and shipping logistics, India and South Korea can diversify global ship production beyond traditional hubs, reduce bottlenecks caused by capacity shortages in East Asian shipyards and expand maritime exports and regional influence.
India’s partnership with South Korea can, therefore, strengthen redundancy and diversity in global maritime supply chains. This shipbuilding partnership is part of a broader economic strategy. Modi and Lee set a target to nearly double bilateral trade from current levels to $50 billion by 2030.
Collaboration in shipbuilding, maritime logistics and related industries is expected to attract new investment and joint ventures, boost trade in goods and services linked to shipbuilding networks, and create a stable pipeline of industrial demand for both economies.
"South Korea is the world’s largest shipbuilding nation," K Yhome, Fellow at the Shillong-based Asian Confluence think tank, told ETV Bharat. "It is not surprising that India is looking to tap South Korea’s knowhow, technology, and manpower."
He said that, on the other hand, South Korea has been able to build its shipbuilding industry to enormous capacity and hence it is looking for partners to export its knowhow. "India is an emerging market," Yhome said. "India has a huge market for infrastructure, including shipbuilding."
He said that as India's exports grow, the current infrastructure it has is not enough. "The capacity to handle the growing commerce does not align with India’s ambition given the ‘Viksit Bharat’ vision," he further stated.
"India also wants to be a maritime hub in the Indian Ocean. It can develop maritime hubs in the Andamans, the east coast, and the west coast."
Yhome said that keeping in mind India's aim to become a transportational hub, New Delhi is looking for partners that can make investments and transfer technology.
"In strategic terms, both India and South Korea are naval powers," he said. "So, both countries are interested in shaping the economic and security order of the evolving Indo-Pacific architecture. Both countries don't want a situation where the region is dominated by one power."
To sum up, this partnership between India and South Korea represents a concrete step toward reshaping India’s maritime future and elevating its position in global shipbuilding and logistics networks.
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