The shipbuilding sector exhibits dual natureglobal character; as well as high
government intervention. Paradoxically, shipbuilding activity is highly globalized in terms of sales,
but simultaneously it is highly nationalized in terms of organization of production with fairly
high levels of government intervention. The shipbuilding activity is highly influenced by the
shipping (freight) markets, secondhand sale and purchase market and demolition market. Although
there are various other factors influencing the shipbuilding sector, global shipbuilding activities
are found to be highly concentrated in selected geographical regions from time to time.
The leadership in global shipbuilding activities has gradually shifted from Europe to Japan
to Korea, and recently China has emerged as a major
player.
In this context, India has also identified an opportunity to develop its
shipbuilding infrastructure. Although India's share of shipbuilding production in the world output is
just 1.17%, it ranks among the first five major shipbuilding nations. As India has about 12
major ports and approximately 184 operational non-major ports on its vast coastline of 1,600
kms, the shipbuilding infrastructure along with port infrastructure is being developed with
an integrated approach to create maritime clusters. Till the last decade, the Indian
shipbuilding sector was dominated by public sector shipyards, but recently the Government of India
invited private sector participation to make the Indian shipyards globally competitive. |