【By Observer News, Qi Qian】

The Trump administration of the United States has been committed to "making the American shipbuilding industry great again," viewing Chinese ships as a "thorn in the eye."

Except for South Korea, India also sees this as an "opportunity," starting to promote the expansion of its own shipbuilding industry and accelerating the attraction of overseas customers. However, data show that India's tonnage completion ratio is far behind the world's three major shipbuilding countries (China, South Korea, Japan). Previously, analysts pointed out that India's ideals are full, but reality is harsh: it faces formidable challenges in comparative advantages, technical capabilities, and R&D funding.

According to reports from Nikkei Asia and India's Economic Times, on October 29 local time, Indian Prime Minister Modi delivered a speech at the "India Maritime Week" event, emphasizing that the government is strongly supporting the development of shipbuilding and ports. The event brought together representatives from more than 85 countries, including government and industry figures. Over 500 companies showcased their technologies.

"The maritime sector of India is advancing with great speed and vitality in the 21st century," said Modi. In the face of trade disruptions and changes in supply chains globally, India is a symbol of "strategic autonomy, peace, and inclusive growth." "India hopes to strengthen the resilience of supply chains at the global level."

He boasted about the performance of Indian ports, stating that they are now considered among the most efficient ports in developing countries, "and in many cases, their performance surpasses that of ports in developed countries."

The first aircraft carrier built independently by India, "Vikrant", Indian media

The report mentioned that the Modi government aims to transform India into a shipping hub, seeking to increase India's share in global freight volume from 1% to 20% by 2047, which is the 100th anniversary of India's independence. In September this year, the Indian government announced a support plan worth about $7.86 billion, including a maritime development fund, used for investment in shipbuilding and marine infrastructure.

According to Nikkei Asia, Cochin Shipyard Limited, an Indian state-owned shipyard, is the backbone of the country's shipbuilding industry. The company was established in 1972, and its first facility was completed in 1982, supported by Mitsubishi Heavy Industries of Japan. In the past five years, the shipyard has delivered 70 vessels, including small merchant ships and naval vessels, mainly relying on domestic demand growth.

In the fiscal year ending March, the shipyard's sales increased by over 20% to about 50 billion rupees, and its net profit also increased.

To seek further growth, Cochin is targeting the needs of other countries. In July this year, it signed a memorandum of understanding for technological cooperation with Hyundai, the largest shipbuilder in South Korea. On October 15, it received an order from CMA CGM, a major shipping company in France, to build six small LNG-powered container ships.

Additionally, Mitsui O.S.K. Lines is considering ordering crude oil tankers from Cochin. Last month, the president of Mitsui O.S.K. Lines stated, "The Indian government hopes that new ships will be built in India. If possible, we hope to participate in this project."

According to official data from India, the country completed 200 ships in the fiscal year 2023, which is about three times that of the fiscal year 2020.

Official data from India shows that the country's shipbuilding industry has been expanding continuously. Map by Nikkei Asia

The report said that in recent years, due to high material prices and increasing orders, ship prices have continued to soar. Labor shortages have further tightened the supply, creating opportunities for India to establish itself in the shipbuilding market. India also believes that the Sino-US trade tensions provide a favorable wind for its shipbuilding companies.

However, data show that India is still far behind the world's three major shipbuilding countries. In 2022, China, South Korea, and Japan accounted for more than 90% of the global market share in completed tonnage. At the same time, India faces many challenges in improving its ranking, including human resources and supply chain development.

On the 29th, Madhu Nair, chairman of Cochin Shipyard, frankly spoke about the timeline for the growth of India's shipbuilding industry, saying, "It will take at least 15 years, or even longer. Nothing happens overnight."

Regarding the "shipbuilding dream" of the Modi government, observer Wang Dawan does not have much confidence. He mentioned that after the Modi government came to power in 2014, it once proposed the slogan of "reviving the Indian shipbuilding industry," but progress was slow.

When India announced its support plan in September, "Wang Dawan" published an article pointing out the real challenges facing India's shipbuilding industry: India's only comparative advantage is low labor costs, which is relatively single; India's technology is lagging, lacking the ability to build high-tech, high-value-added ships; the support plan of India is just a drop in the bucket for upgrading shipbuilding bases across the country.

Indians regard the first aircraft carrier built independently, "Vikrant," as a source of pride. However, before its formal commissioning in September 2022, it experienced eight years of construction at Cochin Shipyard, followed by nine years of outfitting and sea trials, and three subsequent launching ceremonies.

Xinhua previously reported that the "multiple launches" of the "Vikrant" became a laughing stock in the global navy and exposed serious problems in production management at the shipyard. Indian shipbuilding companies face major issues such as insufficient technical accumulation, lax management, and lack of employee training, which are the main causes of accidents in the construction and maintenance of Indian naval vessels.

"In summary, this shipbuilding industry upgrade plan of India indeed reflects the intention of the Indian government to catch up with international advanced levels in the shipbuilding industry and compete for market share," the article analyzed. "But it is still idealistic, while reality is harsh—missing the expected goals is probably the case."

This article is an exclusive piece by Observer News. Reproduction without permission is prohibited.

Original: https://www.toutiao.com/article/7567176294120342051/

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