India to Gain from Shift in Global Shipbuilding Market as China-Plus-One Strategy Takes Hold

India Seeks to Position Itself as a Leading Shipbuilding and Repair Hub Amid Global Disruption

The ongoing West Asia crisis has sent shockwaves through the global shipping industry, forcing vessels onto longer routes, increasing operating costs, and boosting demand for repairs, retrofits, and new ships. Amid the disruption, India is positioning itself as an alternative shipbuilding and repair hub, seeking to capitalize on the growing trend of diversification beyond traditional centers such as China and South Korea.

According to Vivek Merchant, director at Swan Defence and Heavy Industries, the shift towards a "China Plus One" phase is driven by government support, naval expansion programs, and rising global demand for additional shipbuilding capacity. Merchant noted that the closure of the Strait of Hormuz has turned maritime logistics into a survival issue, accelerating structural shifts in fleet deployment, maintenance, and expansion.

The Implications of the West Asia Conflict

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The disruption around the Strait of Hormuz has led to longer, rerouted voyages, increased pressure on existing fleets, and a sharper focus on asset readiness. This has driven higher demand for ship repairs, maintenance, and fleet modernization, alongside a gradual uptick in newbuild requirements over the medium term. For Swan Defence, this validates the strategic direction taken, with a focus on building scale, technical depth, and execution capability at India's largest shipyard to serve both commercial and defense segments.

India's Growing Presence in the Shipbuilding Industry

Shipowners and governments are reducing reliance on a limited set of geographies by diversifying supply chains, positioning India as a credible alternative for global shipbuilding and repair. Swan Defence's scale, infrastructure, and strategic partnerships position it well to capture a significant share of this opportunity. With the Middle East in the midst of a war and global shipping lines desperate for safe, large-scale repair hubs, Swan Defence is poised to take advantage of the growing demand.

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Swan Defence's Capabilities and Partnerships

Swan Defence has completed 20 repair projects across Ministry of Defence ships, offshore platforms, and commercial vessels over the past 12 months, consistently on or ahead of schedule. The company's 662 m × 65 m dry dock, the largest in India, enables the handling of multiple large and complex vessels simultaneously across repairs and new builds. Combined with modern fabrication and engineering capabilities, the facility allows for high-complexity projects without compromising on timelines or quality.

India's Ambition to Become a Top 5 Global Shipbuilding Hub

India has long built the hulls while importing the engines and propulsion, but through its alliances with global players like Samsung Heavy Industries, Swan Defence is securing the necessary technology to ensure an Indian ship can sail even if global supply chains totally collapse. The company's focus is on developing capabilities across complex vessel design, modular construction, advanced production systems, and future-ready platforms, with the objective of building a self-reliant, globally competitive shipbuilding capability in India.

The Road Ahead

India's ambition to become a Top 5 global shipbuilding hub by 2047 requires strengthening execution capacity – scaling skilled talent, expanding the ancillary ecosystem, and investing in R&D, design, and digitization. With policy support, domestic demand creation, and naval expansion creating strong structural tailwinds, Swan Defence is well-positioned to contribute to India's broader ambition. The company plans to invest Rs 600 crore in capital expenditure to increase throughput, reduce cycle times, and expand capacity for more complex vessels.