NEW DELHI — The leaders of the world’s two largest democracies are at odds over a range of issues, from tariffs to visas to purchases of contraband Russian oil. But U.S. President Trump and his Indian counterpart, Prime Minister Narendra Modi, share at least one common goal: Both men have made reviving their country’s dormant shipbuilding industries priority.
On Wednesday, Mr. Modi’s cabinet approved a comprehensive $10 billion plan for the country’s maritime industry that includes greater financing, technical development and policy reforms over the next decade. The aim is for booming India — GDP here has grown 105% in just a decade — to be one of the top five shipbuilding nations by 2047, the 100th anniversary of independence from Great Britain.
“We own less than 1% of the world’s ships and we build less than 1% of the world’s ships,” T.K. Ramachandran, secretary of India’s Ministry of Ports, Shipping and Waterways, told The Washington Times on Wednesday. “Shipbuilding for us is a very important strategic as well as commercial objective.”
The Indian government’s efforts follow Mr. Trump’s April 2025 executive order to bring shipbuilding back to the U.S., which will essentially require the rebuilding of an entire industry from the ground up. The White House said the industry had been crippled by decades of government neglect, leading to the decline of a once-strong industrial base while simultaneously empowering adversaries and eroding U.S. national security.
“Both our allies and our strategic competitors produce ships for a fraction of the cost needed in the United States,” the White House executive order stated.
It’s the same in India, where the domestic shipbuilding industry has fallen behind its regional competitors.
“Financing of ships and shipyards was not progressing as well as it should have. China, Japan, and Korea produce almost 85% of the world’s output,” Mr. Ramachandran said. “We spend $75 billion annually to move cargo — renting ships or hiring ships.”
Key initiatives of India’s drive include establishing eight new shipbuilding and repair clusters, boosting the manufacturing of domestic components, and training at least 500,000 skilled workers who will be needed to construct high-tech commercial merchant vessels.
During the COVID pandemic, India was forced to rely on foreign-flagged and owned ships to supply them with the medicine and protective gear needed for its nearly 1.5 billion people. In times of war, the country could essentially be held hostage because it lacked a sufficient number of Indian-owned commercial vessels.
“We think that is not only economically sensible but strategically necessary,” Mr. Ramachandran said.
Under the new plan, the Indian government also will consider shipbuilding to be a form of infrastructure, allowing for greater tax breaks and financial incentives for Indian manufacturers.
“We have a maritime vision and by 2047, we want it to be as developed as some of the most developed countries in the world — like the U.S.,” Mr. Ramachandran said.
The U.S. shipbuilding industry faces a significant personnel shortage, driven primarily by a lack of new entrants, an aging workforce and declining national focus on vocational training. Officials acknowledge that it hinders the industry’s ability to maintain a competitive advantage, which also contributes to backlogs in production and maintenance efforts.
“Unlike the U.S., we have a lot of people. The only problem is that we need to get the technology and necessary training modules from other countries or other partners,” Mr. Ramachandran said. “That’s why we’re collaborating with some of the top shipping companies like Korea and Japan. They have the skills, but they don’t have the manpower.”
He said both countries are experiencing capacity constraints in their shipyards and are booked until 2028 at the earliest. That’s where India could step in.
“They don’t have the space to build anymore ships.. They’re getting orders, but they can’t build them in Korea or Japan,” Mr. Ramachandran said. “Since we have the manpower, maybe we can join with them and build their ships here.”
India’s nominal GDP has grown 105% in just a decade, which means that it has more than doubled from 2014 to 2025. India will still be the fastest growing major world economy with a GDP growth rate of 6.2% for 2025 amidst geopolitical conflicts.
