Thanks to the boom witnessed in the global maritime trade and shipbuilding activities in recent times, the Indian shipbuilding industry, with its competitive advantages of low-cost labor and know-how, is all set to conquer newer territories in this decade.

It was in 1955, a trapezoid reservoir measuring about 214 x 36 meters, belonging to the Harappan Civilization of 3^rd millennium BC and identified as the first tidal dock of the world for berthing and servicing ships, was excavated at Lothal, Gujarat. The finding, along with the terracotta models of boats found at Lothal and the engravings of sailing crafts on Indus valley seals and panels, besides the numerous references in classical literature to maritime activities and boatbuilding technology in the various regions of India, stands as a testimony to the earliest origins of the shipbuilding industry in India. Despite boasting of such a hoary history, the shipbuilding industry in India accounts for just about 1% of the global market share. While it does reflect the missed chances, it also reveals the profusion of opportunities for India in an industry that has hitherto been dominated by South Korea, Japan, and China, which together hold 75% of the overall global market share.

In fact, there is a growing demand for shipbuilding, including manufacturing marine equipment and providing related services, across the world. The triggers behind this demand include: the scrapping of old vessels, International Maritime Organization's (IMO) guidelines to scrap all single hull tankers by 2010, a marked increase in oil and gas exploration activities, and a rise in seaborne trade. According to a report by Angel Broking, about 90% of the goods by volume and 70% by value are transported by sea route. While the world seaborne trade increased from 16,777 billion ton-miles in 1980 to 30,687 billion ton-miles in 2006, growing at a CAGR of 2.4%, the fleet of available vessels capacity increased at a CAGR of 1.6% during the same period. Further, the rise in the oil Exploration and Production (E&P) activities is also contributing to the growing demand for ships, support vehicles, offshore rigs, and other related equipment. In other words, the gap between demand and supply has been growing over the years, creating opportunities for countries like India to tap.

The Analyst Magazine, Indian Shipbuilding Industry, Boatbuilding Technology, International Maritime Organizations, IMO, Marine Equipments, Local Market, Indian Shipbuilders, Public Sector Companies, Material Packages, Industrial Policy Regime, Global Shipping Sweepstakes.