India’s Maritime Industry Attracts Global Shipping Giants

French container shipping heavyweight CMA CGM, along with Denmark’s A.P. Moller–Maersk and Switzerland’s Mediterranean Shipping Company (MSC), is strengthening its foothold in India as the country endeavors to become a “global maritime hub”.

As disclosed, during his state visit to France in mid-February 2025, Indian Prime Minister Narendra Modi along with French President Emmanuel Macron traveled to CMA CGM Group’s headquarters in Marseille where discussions were held regarding the India-Middle East-Europe Economic Corridor (IMEC) with the group’s Chairman and CEO Rodolphe Saadé.

CMA CGM explained that the aim of the IMEC project is to improve connectivity between Europe and India through integrated sea, ocean and land infrastructure while also facilitating energy transport via a subsea cable.

As a result, the corridor is expected to ‘greatly’ boost trade between the European Union and the Middle East—an endeavor that the French shipping major, which strives to own a fleet adapted to alternative energy sources and ‘key port hubs in India, the UAE, and the Mediterranean, wants to be a ‘big’ part of.

One aspect of CMA CGM’s role in the IMEC project involves several dry ports along the IMEC rail route that stretches from India through Saudi Arabia and the Middle East to Europe which is now set to leverage the group’s logistics network.

Moreover, CMA CGM is understood to have aided in speeding up the decarbonization of logistics and maritime transport in India. For instance, in December 2024, its liquefied natural gas (LNG)-powered boxship CMA CGM Fort Diamant visited the Nhava Sheva Container Terminal, becoming what was claimed to be the ‘first LNG-fueled ship’ to call the port.

Meanwhile, Soren Toft, MSC’s Chief Executive Officer, paid a visit to India this week where he met with Piyush Goyal, the nation’s Union Minister of Commerce and Industry, to discuss a number of possible investments and initiatives.

In a social media post on X, Goyal revealed that the discussion concentrated on inland container terminals, (eco-friendly) shipbuilding, maintenance as well as container manufacturing, among other matters.

The potential partnership with the South Asian nation’s government – as well as maritime industry stakeholders – is understood to be another ‘big’ step forward for the Swiss giant, especially with its subsidiary MSC India having been recognized as the “Mainline Container Operator of the Year with Widest Sector Coverage” at the India 8th Maritime Awards, held in June 2024 in Mumbai.

Simultaneously, Maersk has made efforts to ‘bolster’ its position in India through a memorandum of understanding (MoU) signed with the country’s largest shipbuilding and maintenance facility Cochin Shipyard Limited (CSL). Per the MoU, the two partners are set to look into collaboration opportunities regarding ship repair, maintenance and construction.

Leonardo Sonzio, Head of Fleet Management & Technology, A.P. Moller-Maersk, called this development an opportunity to help “strengthen India’s maritime infrastructure.”

Indian Government Invests Billions in Sustainable Shipbuilding

The recent interest of the ‘world’s largest’ shipping players in powering India’s growth is directly related to the country’s government announcement that it would set up an INR 250 billion (about $2.9 billion) maritime development fund (MDF) for the long-term financing of domestic shipbuilding and repair industry.

Union Finance Minister Nirmala Sitharaman unveiled that the government planned to contribute 49% of the fund and seek the remaining 51% from ports and the private sector. As informed, the MDF’s primary purpose is for financing ship acquisitions, in line with the nation’s ambition to increase the share of Indian-flagged vessels to 20% by 2047.

These investments will reportedly also target enhancing infrastructure, workforce training, and research and development. What is more, according to a new analysis by Intermodal, shipowners can receive a credit note equivalent to 40% of a scrapped ship’s value, usable for newbuilding orders at domestic shipyards.

In the report, Intermodal has spotlighted that, despite being one of the world’s biggest economies, India holds a minimal share—less than 1%—of the global shipbuilding market, which remains dominated by China, Japan, and South Korea.

Per the report, domestic shipyards primarily construct small to medium-sized vessels, typically below 20,000 dwt. The largest unit ever constructed in the country is considered to be a 93,322 dwt Aframax tanker built by CSL in 2002 for the Shipping Corporation of India.

Intermodal has noted further that over the past twenty years, Indian yards have also produced eight Panamax, five Supramax, and thirteen Handysize dry cargo vessels.

In spite of stumbling blocks, however, the country’s shipbuilding sector has shown growth over the past few years with analyses suggesting it could experience a compound annual growth rate (CAGR) of 60%, that is, go from the $1.12 billion value in 2024 and reaching the projections of $8 billion by 2033.

Presently, Indian shipyards have a 96-ships-strong orderbook, totaling 460,000 dwt, with general cargo units making up more than 60%, Intermodal has shared, adding that the country’s yards contribute around 10% of the global demand order volume for this segment.

Among domestic yards, Chowgule Group is said to lead with 29 vessels on order, followed by Cochin Shipyard with 27 newbuilds.

While India’s shipbuilding ambitions remain lofty, Intermodal’s report proposes that an ‘efficient’ allocation of financial resources could enhance its prospects and – at the same time – make a ‘major’ contribution to the nation’s effort to become a ‘top-tier’ shipbuilding player by 2030.