As global new ship orders decline, South Korea’s shipbuilding industry is accelerating efforts to deepen its partnership with India, according to the Korea JoongAng Daily. Industry insiders in South Korea cautioned that “the shipbuilding sector may have passed its peak, with South Korean shipbuilders viewing India as a potential base for long-term growth.”
Recently, news that South Korea’s largest shipbuilding group, HD Hyundai, signed an exclusive cooperation agreement with the southern Indian state of Tamil Nadu for the construction of a new shipyard has attracted attention. If the project proceeds smoothly, the total investment in the new shipyard could reach approximately US$2 billion. Tamil Nadu has prioritized the construction of the shipyard as a top priority for revitalizing the local economy and has chosen HD Hyundai as its strategic partner.
The agreement comes at a crucial juncture for India’s Maritime Amrit Kaal Vision 2047 initiative to expand its shipbuilding capacity. The Indian government has designated five states, including Tamil Nadu, Gujarat, and Andhra Pradesh, as candidate sites for the new shipyard and is currently evaluating potential locations.
It is understood that the Thoothukudi region in Tamil Nadu is one of the core candidate sites for the new shipyard. The area’s climate conditions, including temperature and precipitation, are similar to those in Ulsan, South Korea, where HD Hyundai Heavy Industries is located. Furthermore, with plans for large-scale investment in surrounding port facilities, it has been rated as the optimal location.
Beyond shipbuilding, HD Hyundai recently has signed a Memorandum of Understanding with BEML, a state-owned enterprise under India’s Ministry of Defense, to expand cooperation in crane operations. The two parties will collaborate across the entire crane manufacturing process—including design, production, and quality verification—and plan to supply various lifting equipment, including mega cranes and container cranes, to Indian shipyards in the future.
In fact, HD Hyundai has been expanding its presence in the Indian market since July this year, gradually broadening its cooperation with India’s largest state-owned shipyard, Cochin Shipyard. Following the signing of a comprehensive long-term cooperation agreement in July covering design, procurement, production efficiency enhancement, technical collaboration, and talent development across the shipbuilding sector, the two parties further established cooperation in the defense ship repair and construction field in August.
In addition to HD Hyundai, two other major South Korean shipbuilders—Hanwha Ocean and Samsung Heavy Industries—have also been actively seeking entry into the Indian market since late 2024. Hanwha Ocean has met with officials from India’s Ministry of Ports, Shipping, and Waterways and inspected Hindustan Shipyard to discuss cooperation opportunities. Samsung Heavy Industries, meanwhile, has directly presented its shipbuilding technologies to Indian government officials.
South Korean media believes that the growing interest shown by the country’s three major shipbuilding giants in the Indian market reflects widespread concerns within the South Korean shipbuilding industry.
According to Clarkson data released earlier this month, global new ship orders from January to November 2025 totaled 44.99 million CGT (1,627 vessels), down 37% year-on-year (71.52 million CGT, 2,994 vessels). South Korean shipyards secured orders of 10.03 million CGT (223 vessels) during the period, accounting for a 22% market share. representing a 5% year-on-year decrease in order volume. As of the end of November, the global order backlog stood at 168.4 million CGT. South Korean shipyards held 33.76 million CGT in orders during the reporting period, down 3.66 million CGT year-on-year, with a market share of 20%.
Based on current new ship order data, South Korean industry insiders warn: “Once South Korean shipyards complete their existing orders, they may face the risk of declining performance within the next two to three years.”
In response to the global decline in orders, South Korean shipbuilders are increasingly viewing India as a potential base for long-term growth, as the country is emerging as a highly promising growth market.
Data from market research firm Ken Research indicates that India’s shipbuilding and repair market surged from $90 million in 2022 to $1.1 billion in 2024, marking a more than twelvefold increase. Consequently, analysts project the market will maintain an annual growth rate exceeding 60% through 2033.
Not only that, India has also sent positive signals by establishing a maritime development fund of approximately 250 billion rupees (about US$3 billion) to support the growth of related domestic industries, and has begun providing comprehensive support for the shipbuilding and shipping sectors. Concurrently, the country has outlined plans to place orders for 112 crude oil carriers with domestic shipyards by 2040, representing an investment of approximately $10 billion. Additionally, it intends to create a shipbuilding industrial cluster through the acquisition of 15,000 acres of coastal land and an investment of 1.5 trillion rupees.
Regarding India’s multiple initiatives in the shipbuilding and shipping industries, a representative from the Overseas Economic Research Institute of the Export-Import Bank of Korea stated: “India will not only order container ships in the future but also procure high-value-added LNG carriers. Therefore, Korean shipbuilders need to establish local bases as soon as possible. Lower labor costs, sustained investment, and workforce training will help build mutually beneficial cooperative relationships.”