Anchoring the Future: India’s $10 Billion Push for Homebuilt Tankers

Image Source: India Global Business

India has made the historic $10 billion investment in building a fleet of 112 locally constructed crude oil tankers by 2040, a step aimed at securing its energy supply chain and reviving the nation's shipbuilding sector. The ambitious program is being made as India, the world's third-largest crude importer, looks to cut its dependence on foreign-made ships and enhance its navy and marine capabilities in the face of global geopolitics.

Key Highlights:

The strategy includes buying 112 oil tankers, with an initial phase to acquire 79 ships—30 of them medium-range tankers. The first order for 10 ships is likely to be placed as soon as this month.

Only Indian-made tankers, even if with foreign collaboration, will be bought, reflecting the government's thrust for indigenous production.

India wants to raise the proportion of domestically constructed oil tankers within the country's national shipping fleet to 5% from current levels to 7% by 2030, and a remarkable 69% by 2047—the year India aims for developed nation status.

It's part of a larger plan for maritime expansion that also involves ramping up shipping capacity for coal, fertilizers, and steel, as well as crude oil.

To aid this vision, a 250 billion rupee maritime fund has been created to encourage domestic shipmaking, and incentives are being provided to international shipbuilders, especially South Korean and Japanese ones, to establish production bases in India.

The strategy deals with strategic vulnerabilities revealed by recent global shipping disruptions and sanctions, particularly as India's refining capacity is poised to nearly double to 450 million tonnes annually by 2030.

The government's plan is also intended to spur technological innovation, create jobs, and spur economic development in connected sectors.

Focusing on domestic shipbuilding, India is placing itself among strong global maritime competitors and reaffirming its economic resilience amidst changing energy and trade patterns.

Source: India News Network, Moneycontrol, BEAMSTART, Reddit/GeopoliticsIndia