India is stepping up efforts to boost its domestic shipbuilding industry, with plans underway to set up eight major shipbuilding clusters along the coastline. Of these, five will be entirely new, built from scratch (greenfield projects), while three will expand existing facilities, according to several reports. Union Shipping Secretary T.K. Ramachandran confirmed that the locations have already been finalised, with land and necessary approvals secured to move forward.
This initiative comes in response to India’s small footprint in the global shipbuilding market, currently less than 1 percent. Countries like China, South Korea, and Japan dominate the sector. Through the Maritime India Vision 2030 and Vision 2047, India aims to rise to the top 10 shipbuilding nations by 2030 and the top 5 by 2047.
This shipbuilding initiative is part of the broader Maritime India Vision 2030, which outlines total investments of Rs. 3–3.5 trillion in ports, shipping, and inland waterways to transform India into a major maritime powerhouse.
The five new greenfield clusters are planned in Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra. According to Ramachandran, each will feature a complete ecosystem—ranging from ship construction and equipment manufacturing to support services like vendors, bunkering, insurance, and ship leasing.
In addition to the greenfield projects, three existing shipbuilding sites are set for major upgrades, Vadinar and Kandla in Gujarat, and a facility near Cochin Port in Kerala. To boost capabilities, officials are actively seeking global partnerships, particularly with companies from South Korea, Japan, and Scandinavia.
The broader plan involves a massive inve stment of around Rs. 2 lakh crore over the next five to six years. In the Union Budget for FY26, the government introduced several incentives to support the sector, including a Rs. 25,000 crore Maritime Development Fund, tax benefits, improved access to financing, and an updated Shipbuilding Financial Assistance Scheme.
Following are a few stocks that can benefit as India plans to develop 8 shipbuilding clusters under Rs. 2 lakh crore plan:
Mazagon Dock Shipbuilders Limited
With a market cap of Rs. 1.32 lakh crores, the stock moved up by nearly 0.5 percent on BSE, to close in the green at Rs. 3,291.1 on Tuesday. Mazagon Dock Shipbuilders Limited is a key supplier of warships, missile boats, and submarines to the Indian Navy and Indian Coast Guard. As of March 2025, the company holds a total order book valued at Rs. 32,260 crores.
Its diverse product portfolio includes naval ships, submarines, littoral combat ships, naval auxiliary vessels, tugs, barges, dredgers, support vessels, ferries, cargo ships, Fuel Cell Electric Vessels, air boats, solar electric hybrid boats, lithium-ion batteries, and AUV swarm drones.
Beyond manufacturing, the company also offers services such as warship and submarine repair and refit, ship designing, tug support, supply chain management, and the use of self-propelled modular transporters (SPMTs).
Garden Reach Shipbuilders & Engineers Limited
With a market cap of Rs. 32,450 crores, the stock moved down by 2 percent on BSE, to close in the red at Rs. 2,832.8 on Tuesday. Garden Reach Shipbuilders & Engineers Limited is mainly engaged in the construction of warships. The Company was taken over by the Government of India in 1960. GRSE aims to become a Navratna company by 2030 and be globally recognised as the best Indian Shipyard company.
Its operations span shipbuilding, ship repairs, as well as engineering and engine works. As of March 2025, GRSE’s order book stood at Rs. 23,680 crore, covering 9 projects that span 40 platforms.
Cochin Shipyard Limited
With a market cap of Rs. 53,166 crores, the stock moved down by nearly 1.5 percent on BSE, to close in the red at Rs. 2,020.9 on Tuesday. Cochin Shipyard Limited is one of the leading shipyards in India, owned by the Government of India and located in Kerala. It holds a “Miniratna” status and is primarily engaged in the business of shipbuilding and ship repair, catering to both the domestic and international markets.
Knowledge Marine & Engineering Works Limited
With a market cap of Rs. 1,750 crores, the stock moved up by nearly 1.6 percent on BSE, to close in the green at Rs. 1,620 on Tuesday. Knowledge Marine & Engineering Works Limited (KMEW) is engaged in the business of providing dredging services, owning, chartering/hiring, along with manning, operation, and technical maintenance of marine crafts, repairs/maintenance of marine crafts and marine infrastructure, and allied works in India.
As of May 2025, the company’s total order book stood at Rs. 881 crores, out of which Rs. 201 crores worth of orders had already been executed. Between February and May 2025, KMEW secured fresh orders totalling Rs. 353 crores.
Marine Electricals (India) Limited
With a market cap of Rs. 2,840 crores, the stock moved down by nearly 1 percent on NSE, to close in the red at Rs. 205.9 on Tuesday. Marine Electricals operates in the Marine and Defence sectors, offering power generation and distribution, internal communication systems, Integrated Bridge Systems (IBS), Integrated Platform Management Systems (IPMS), electrical and hybrid propulsion systems, marine LED lighting, ancillary systems, and marine motors. The company aims to become one of the top ten players in the international marine market.
Written by Shivani Singh
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