For much of its existence, the Indian shipbuilding industry was designed to cater to domestic needs only. It is only in recent years, with private influences leading the way, that local shipbuilding efforts have taken on global interests.
The shipping industry is still governed by three acts, the most recent of which is the Merchant Shipping Act of 1958. The Inland Vessel Act of 1917 and the Coasting Vessels Act of 1838 are still valid. Most ships that are registered today do so under the former act, but smaller coastal vessels and barges may still take advantage of the older laws.
In total value terms, the total overseas shipping bill for India is an estimated $5 billion. The Indian shipbuilding industry is responsible for about 12% of that total cost. About 30% of total overseas trade, either exports or imports, runs through the shipping industry in some form.
Interesting Indian Shipbuilding Industry Statistics
#1. The current reported size of the Indian shipbuilding industry is 1,210 vessels with a GRT of 10.5 million. The current output per year is 42% of the total Indian tonnage. (Indian Mirror)
#2. The Indian shipbuilding industry is responsible for 8% of the entire global trade. About 90% of the country’s trade by volume is done by sea. (Indian Mirror)
#3. India has the 14th largest fleet in the world when measured by total deadweight tonnage. About 45% of the registered ships in the shipbuilding industry are engaged in overseas trade in some way. (Indian Mirror)
#4. Out of $30 billion in freight each year in India, just 8% of the freight is carried by ships flagged by the Indian shipbuilding industry. (Indian Mirror)
#5. Indian shipping contributes about 8% of the total global trade in terms of volume, but just 1.3% of the total global trade in terms of overall monetary value. (Indian Mirror)
#6. Indian shipyards have less than 1% of the global shipbuilding and repair market. In 2002, it has just 0.1% of the global shipbuilding industry. In comparison, China, Singapore, and nations of the Middle East may have a share of almost 45%. (Economic Times of India / International Journal of Innovative Research and Development)
#7. Export orders are about 80% of the total market share for the Indian shipbuilding industry in its current state. (International Journal of Innovative Research and Development)
#8. Despite the low percentages the industry has typically had for global orders, the industry ranks 6th in total order book aggregating. In 2010, that meant 257 vessels with a 2.4 million CGT. (International Journal of Innovative Research and Development)
#9. The Indian shipbuilding is primary centered around 27 shipyards. They are under state and central control, with private-sector influence, focused primarily in the southern part of the country. (International Journal of Innovative Research and Development)
#10. At its highest point in 2007, India had the fourth-largest order book in the world, with a 1.2% total world market share. Two-thirds of the orders accepted by the industry involve dry bulk vessels. Tankers make up another 21% of the market, while specialized vessels have a 10% market share. (International Journal of Innovative Research and Development)
#11. Most of the work that comes into the India shipbuilding industry comes from three primary customers. ABG Shipyard, Pipavav Shipyard, and Bharati Shipyard are all ranked in the global Top 150. New investments into these agencies typically creates new orders for the industry. (International Journal of Innovative Research and Development)
#12. The working hours per CGT is quite variable within Indian shipbuilding yards. In a 2008 survey, one shipyard averaged 85 working hours per CGT, while another averaged 424 working hours per CGT. (International Journal of Innovative Research and Development)
#13. Shipyard sizes in India can vary greatly as well. The smallest shipyards, often family enterprises, average about 4 square meters per CGT produced. The largest shipyards are about 20 square meters per CGT produced. (International Journal of Innovative Research and Development)
#14. About 95% of India’s trading volume is handled through the ports and local industry, along with 70% of its total value. (Equity Master)
#15. The Indian shipbuilding industry is forecast to growth with a CAGR of 30% through 2020, achieving a total value of $22.1 billion. If those figures can be achieved, the possible share of the global order book could be as high as 14.6%. (IBEF)
#16. Employment opportunities within the Indian shipbuilding industry are forecast to rise at 20%, with the potential of employing more than 171,000 people by the year 2020. (IBEF)
#17. There are currently 23 shipyards in India, with 9 of them being state-owned. The largest, Cochin Shipyard Ltd., is capable of building ships up to 110,000 DWT and repairing vessels up to 125,00) DWT. There are also 34 dry-docks available for ship repair in the public and private sectors, but a handful of ports have no dry-dock facilities. (IBEF)
#18. In 2010, of the 223 ships that were on order with the shipbuilding industry, 152 of the vessels, at a value of $2.77 billion, came from overseas orders. (IBEF)
#19. The Indian shipbuilding industry has been able to maintain a historical value addition in the yard of about 30%. (IBEF)
#20. For domestic vehicles, the most common orders are for tugs. They result in 29% of total orders placed, but less than 5% of the total deadweight total. In comparison, bulk carriers account for 21% of the total orders places, but account for over 76% of the DWT. (IBEF)
Indian Shipbuilding Industry Trends and Analysis
There are many opportunities waiting to be found within the Indian shipbuilding industry. The scope of growth is so high, in fact, that foreign direct investors have put more than $70 billion into the industry over the last decade.
By getting involved in more shipping opportunities, the shipbuilding industry is poised to create more tonnage. It would create more jobs. More than 200 inland vessels are anticipated to be needed each year as inland waterways in India grow.
Government officials want that growth to be centered within the local shipbuilding industry. Instead, they have been relying on imports to solve their problems.
New policies are in place for the industry to double its size to Rs 20,000 crore by 2022. With infrastructure status awarded for cheaper loans, relaxed codes, and additional benefits, it may be possible to achieve that growth by the forecast date.
Last month, more than 2 million people visited Brandon's blog. He shares exactly how he took his blog from zero to 1 million monthly visitors here. His path to success was not easy. Brandon had to comeback from being disabled, by a rare health disorder, for most of his thirties. God delivered him from hardship and has blessed his family in so many wonderful ways. You can send Brandon a message here.