India is emerging as a new force in global shipbuilding as it moves beyond a limited defense-led industrial structure and pursues a higher-value model linking green ships with smart logistics.
According to the global shipbuilding industry on 19 April, French shipping group CMA CGM signed a final contract in February with state-run Cochin Shipyard for the construction of six 1,700 TEU LNG-fueled container ships worth about $360 million. The order is described as the first case in India’s shipbuilding history of securing large commercial vessels from a major global shipping company.
India is also working with Capgemini of France to establish a dedicated AI and digital R&D center. The center, to be built in Chennai, will use artificial intelligence and data analytics to study global supply chain optimization and automated vessel routing. It is also intended to position India as a key base for logistics intelligence within the CMA CGM group.
These investments indicate that India is not seeking to remain only an alternative manufacturing base under the China+1 strategy. The strategy refers to a business approach in which global companies add production capacity in countries such as India or Southeast Asia instead of relying only on China, in order to manage supply chain risk.
India’s shipbuilding industry is also expanding on the back of its defense self-reliance policy. On 3 April, the country officially commissioned its third domestically built nuclear-powered ballistic missile submarine, INS Aridhaman, demonstrating its ability to build high-end strategic assets.
That progress has been reflected in the performance of state-owned shipyards. GRSE, one of India’s leading state-run yards, posted revenue of Rs 64 billion in fiscal year 2025-26, up 26% from a year earlier.
Regional initiatives are also gaining pace. In March, the government of Tamil Nadu announced the Tamil Nadu Shipbuilding Policy 2026, aimed at fostering the regional shipbuilding industry as a world-class, technology-based sector.
Under the policy, Tamil Nadu plans to establish NSHIPTN, a special purpose vehicle under SIPCOT, and support the industry in coordination with the central government through land and maritime infrastructure development, joint ventures with shipbuilders, and leasing and financing support for major assets.
