India’s warship building sector poised for growth: MDL delivers two Warships, prepares to launch INS Vagsheer

By Anish Kumar  |  First Published Dec 28, 2024, 5:33 PM IST

India's Mazagon Dock Shipbuilders delivers two advanced warships to Indian Navy, highlighting growing self-reliance in defence manufacturing and shipbuilding sector's potential for economic growth and strategic autonomy.


New Delhi: Last week, India marked a significant milestone in its shipbuilding journey when Mazagon Dock Shipbuilders Ltd (MDL) delivered two advanced warships—the Visakhapatnam-class destroyer INS Surat and the Nilgiri-class stealth frigate INS Nilgiri—to the Indian Navy on the same day.

Adding to this achievement, MDL is set to deliver INS Vagsheer, the final submarine in the Kalvari class, soon. These developments highlight India’s growing self-reliance in defence manufacturing and the economic and industrial transformation driven by the shipbuilding sector.

Economic Significance of Warship Construction

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Warship construction is not merely a defence activity—it reflects a nation’s industrial and technological prowess. Integrating advanced technologies such as metallurgy, propulsion systems, radar, sonar, and electronic warfare requires a highly skilled workforce, from engineers to technicians. These capabilities have a cascading impact on ancillary industries, including steel production, engineering equipment, port infrastructure, and maritime trade.

India’s shipbuilding industry has experienced steady growth, with its valuation rising to $1.12 billion in 2024. However, it accounts for less than 1% of the global shipbuilding market, signalling substantial untapped potential. Projections suggest the sector could grow exponentially, reaching over $8 billion by 2033 and potentially $237 billion by 2047.

The Role of MDL and Other Shipyards

MDL has been at the forefront of India’s shipbuilding resurgence. Over the past decade, the yard has delivered seven Kolkata/Visakhapatnam-class destroyers, six Kalvari-class submarines, and the first of four Nilgiri-class frigates. These warships are combat-ready at delivery, a notable improvement from earlier decades when vessels required post-commissioning upgrades to achieve operational capability.

Other state-run shipyards have also demonstrated significant progress:

Garden Reach Shipbuilders and Engineers (GRSE): Building three Type 17A stealth frigates, eight anti-submarine warfare shallow water craft (ASW-SWC), and two survey ships in collaboration with Larsen & Toubro (L&T).

Cochin Shipyard: Constructing eight ASW-SWC and six next-generation missile vessels.

Hindustan Shipyard Limited (HSL): Developing two diving support ships and five fleet support ships in partnership with L&T.

Goa Shipyard Limited (GSL): Completing advanced Talwar-class frigates.

The cumulative output of these yards highlights the growing efficiency and capability of India’s public-sector shipbuilding enterprises.

Challenges and Competitive Context

Despite these achievements, India’s shipbuilding industry faces challenges in competing with global leaders like China, which constructs around 20 warships annually. Other powers benefit from a robust commercial shipbuilding ecosystem that supports its defence sector. In contrast, India’s commercial shipbuilding industry has historically received low priority, limiting its ability to drive similar synergies.

This gap emphasises the need for sustained infrastructure, technology, and human capital investment. The Indian government’s recent initiatives, such as the ₹25,000 crore Maritime Development Fund, aim to address these challenges by fostering a stronger commercial and defence shipbuilding ecosystem.

Strategic Implications and Autonomy

Building advanced warships domestically is a testament to India’s strategic autonomy. It reduces dependence on foreign suppliers, enhances self-reliance (Atmanirbharta), and asserts sovereignty in geopolitical affairs. Moreover, India’s efficiency in delivering complex platforms like INS Nilgiri and INS Surat contrasts with delays and cost overruns faced by many Western shipyards, offering a competitive advantage.

A Vision for the Future

India’s shipbuilding journey reflects a broader narrative of industrial transformation and strategic ambition. Integrating advanced technologies, government support, and public-private collaboration positions the sector as a driver of economic growth and technological innovation.

With global defence markets increasingly seeking alternatives to established suppliers, India’s shipyards have an opportunity to emerge as competitive players. The coming years will be crucial in translating this potential into sustained growth, enabling India to meet domestic needs and cater to international demand.

As the sector continues to mature, India’s warship-building industry has the potential to reshape the country’s economic and strategic landscape, reinforcing its status as a maritime power in the Indo-Pacific and beyond. The dual delivery of INS Surat and INS Nilgiri is a powerful symbol of this transformation—marking not just the coming of age of Indian shipbuilding but also a new chapter in the nation’s industrial and economic story.

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