Japan's second-largest shipping company, Mitsui O.S.K. Lines, has proposed a partnership for tanker construction in India. The Indian government is promoting foreign investment in the shipbuilding and shipyard sector to reduce reliance on foreign ships and lower costs by 2047.
Shipbuilding in India: Following Prime Minister Narendra Modi's visit to Japan, business relations between India and Japan have gained a new dimension. In this regard, Japanese shipping company Mitsui O.S.K. Lines has offered a partnership in tanker construction in India. The company's CEO, Takeshi Hashimoto, stated at the APPEC conference held in Singapore that India intends to increase foreign participation by modernizing its maritime laws. Considering the growing import of crude oil and export of refined products, India has a significant need for ships. The government has also announced a maritime development fund of ₹250 billion in this direction.
India's Focus on Shipbuilding
India is currently modernizing its maritime laws. The government desires to boost foreign investment in sectors like shipbuilding, ports, and shipyards. The aim of this change is to reduce the burden of freight transport on foreign companies by one-third by 2047. Currently, India conducts import-export of crude oil and refined products relying on foreign vessels, which incurs additional expenses for the country.
Japanese Company's Proposal
Takeshi Hashimoto, CEO of Japan's second-largest shipping company, Mitsui O.S.K. Lines, has clearly stated that if an Indian company partners with them, it will strengthen Indian shipyards and promote local manufacturing. Hashimoto mentioned at the APPEC conference in Singapore that the Indian government wants new ships to be built in India itself, and Mitsui O.S.K. Lines is eager to be involved in this endeavor.
Growing Needs and India's Challenges
India's shipping fleet is currently insufficient to meet the country's growing demands. India imports a large volume of crude oil, and simultaneously, the export of refined oil products is also increasing. Despite this, the country has a shortage in both the number and capacity of ships. This deficit compels India to depend on foreign vessels. This is precisely why the government is serious about shipbuilding and is inviting foreign companies to partner in this sector.
Government's Major Step
In the budget presented in February, the Indian government announced the creation of a maritime development fund of ₹250 billion to strengthen the shipbuilding and repair industry. This fund will provide financial assistance over an extended period. The government aims for India to emerge as a global player in the shipbuilding sector.
Takeshi Hashimoto also stated that success in India is possible only through b partnerships with local companies and Indian shipyards. He clarified that Mitsui O.S.K. Lines is prepared to collaborate in this sector, but the active involvement of Indian partners is crucial.
New Business Opportunities
India's exports have seen continuous growth in recent years, leading to increased demand for ships. If shipbuilding accelerates in India, it will not only reduce freight costs but also create employment opportunities. This is why the government and foreign companies are jointly stepping into this sector.
