India is ambitious to revive its shipbuilding industry, and South Korean shipbuilding industry sees an opportunity.
According to Japanese media reports, India has started to focus on promoting the shipbuilding industry. With the increase in maritime transportation, the aim is to reduce reliance on foreign ships and create jobs.
While Koreans are stepping forward as partners, Japan, once known as the "shipbuilding kingdom," shows no signs of movement. "We are accelerating our efforts to reach new heights in the shipbuilding industry."
On October 29, Prime Minister Modi emphasized this during a maritime event held in western Mumbai facing the Arabian Sea. In September, the Indian government approved a package of support totaling about 697.2 billion rupees (approximately 1.21 trillion yen), which is based on financial support for ships built in the country. The plan aims to expand shipbuilding capacity to 4.5 million tons per year, which is dozens of times the current level.
This plan aims to create about 3 million jobs by leveraging the labor-intensive characteristics. In the context of promoting measures, in the same month, Samsung Heavy Industries, a major South Korean shipbuilding company, signed a memorandum of understanding with a company located in the western state of Gujarat.
The two companies plan to jointly promote the construction of merchant ships and heavy industrial projects in India and abroad. Additionally, the South Korean HD Hyundai Group also formed a technical alliance with Cochin Shipyard, the largest state-owned shipyard in southern Kerala, India.
In October, the shipyard announced that it had received an order for six ships from the French shipping giant CMA CGM. China holds an overwhelming share in the merchant shipbuilding market. According to Standard & Poor's Global Ratings, a major U.S. rating agency, China will account for 58% of global shipbuilding tonnage in the second half of 2024, followed by South Korea (24%) and Japan (9%). India currently accounts for less than 1%, but aims to become one of the top five "shipbuilding powers" in the world by the 100th anniversary of its independence in 2047.
However, there are border disputes between India and China, and from a security perspective, it is considered difficult for Chinese companies to enter the Indian market. A Japanese shipping industry official analyzed the Indian shipbuilding market, saying, "There is a future, there is domestic demand, and labor is cheap." He said, "If China cannot come out, then only South Korea remains." On the other hand, Japan expressed a sense of crisis, stating, "Helping India is not like this." The Japanese government has set a target to double the construction volume within 35 years to prevent this decline. The United States, which is emphasizing the return of manufacturing to Japan, is also emphasizing the shipbuilding industry.
Original: www.toutiao.com/article/1847726520028172/
Statement: This article represents the views of the author.