A view of Cochin Shipyard Ltd (CSL), largest shipbuilding and maintenance facility in India.
| Photo Credit: The Hindu
Indian shipyards held an order book of 1.1 million compensated gross tonnage (CGT) as of September 1, 2026, accounting for just 0.5% of the global total, highlighting the scale of the challenge facing the country’s ambition to emerge as a major shipbuilding hub.
India ranked 12th globally, trailing China, South Korea, Japan, Italy, Russia, France, Vietnam, Germany, the Philippines, the U.S. and the Netherlands, Niels Rasmussen, Chief Shipping Analyst at BIMCO, the international shipping association, told The Hindu.
However, domestic shipyards are poised for a pickup in activity. Deliveries scheduled for 2026-2030 are nearly double the tonnage delivered during 2021-2025, Mr. Rasmussen said. The volume could increase further if additional orders are secured for delivery within the period.
The Centre’s ₹69,725-crore shipbuilding package aims to propel India into the world’s top 10 shipbuilding nations by 2030 and the top five by 2047.
Global order book hits record
India’s expansion plans come against the backdrop of a rapidly growing global market dominated by a handful of countries. The global shipbuilding order book reached a record 203.2 million CGT on September 1, 2026, up 13% from a year earlier. The previous high was 195.4 million CGT, recorded in 2008.
China has captured the lion’s share of the expansion, securing 74% of the tonnage contracted globally over the past year. Chinese shipyards now account for 64% of the global order book, followed by South Korea at 19% and Japan at 6%.
China’s dominance extends across major shipping segments. Its shipyards hold more than 72% of orders in each of the six main cargo sectors, including container ships, tankers and dry bulk carriers. Container ships alone account for 30% of the global tonnage currently on order.
Capacity expansion risks
The unprecedented order book is also placing pressure on China’s shipbuilding capacity. Chinese yards are scheduled to deliver a record 44 million CGT in 2028, almost twice the 22.7 million CGT delivered in 2025.
“The capacity expansion needed to achieve this could increase the risk of underutilisation if contracting weakens in the future,” Mr. Rasmussen said.
Published – October 22, 2026 07:26 pm IST