The Indian government’s ambitious push to boost the domestic shipbuilding industry, announced in the Union Budget, is already drawing international interest, with South Korea stepping forward to collaborate on key initiatives. The Korea Marine Equipment Association (KOMEA), a Seoul-based non-profit under South Korea’s Ministry of Industry, Trade and Energy, has offered its support to Indian shipyards for joint vessel design and construction, modernisation of shipyard production facilities, and technology transfer to enhance manufacturing processes, according to multiple sources.
KOMEA, which represents major Korean shipbuilding and ship repair enterprises—including HD Hyundai Heavy Industries, Hanwa Ocean (formerly Daewoo Shipbuilding and Marine Engineering), and Samsung Heavy Industries—has formally pledged to provide highly qualified specialists for on-site education and training. The association also aims to develop joint educational programs, supply industrial equipment for modernising Indian shipyards, facilitate technology transfer, and support the localisation of marine equipment and spare parts.
Founded in 1980, KOMEA has been instrumental in promoting South Korean marine equipment manufacturers globally and currently has a membership base of 304 entities involved in shipbuilding, design, and repair. The association operates in eight countries, including China, Japan, Singapore, the United States, Greece, Saudi Arabia, Brazil, and Russia. With plans to expand its footprint in India, KOMEA sees the country as a strategic partner in advancing shipbuilding capabilities under a bilateral cooperation framework.
“Building strong cooperative relationships between South Korean entities and Indian shipyards could significantly contribute to the growth of the shipbuilding industry in both nations,” a KOMEA official stated. “With over four decades of experience, KOMEA and its members can provide effective solutions to challenges in the shipbuilding sector within a short timeframe.”
The Union Budget, presented by Finance Minister Nirmala Sitharaman, earmarked ₹25,000 crore for the Maritime Development Fund (MDF) and introduced a revamped shipbuilding financial assistance policy to counter cost disadvantages. Additional measures include credit incentives for shipbreaking at Indian yards to promote a circular economy and granting infrastructure status to large ships above a specified size. The government also announced plans to develop shipbuilding clusters with enhanced infrastructure, skilling initiatives, and technological advancements to strengthen the industry’s ecosystem.
A significant boost for shipbuilders came with the extension of the exemption from Basic Customs Duty (BCD) on raw materials, components, consumables, and parts used in ship manufacturing. This exemption, originally set to expire, will now be extended for another ten years from April 1, 2025.
Ahead of the budget announcement, high-level delegations from the Ministry of Ports, Shipping, and Waterways, along with representatives from the private shipbuilding sector, visited leading shipyards in South Korea and Japan. These visits were aimed at forging partnerships and leveraging global expertise to strengthen India’s shipbuilding industry. With South Korea now expressing formal interest in collaboration, the stage is set for India to accelerate its shipbuilding ambitions and emerge as a formidable player in the global maritime sector.
Source: ET Infra
