India’s shipbuilding industry holds strategic and economic significance, contributing to national defense, maritime security, and commercial trade. With a coastline exceeding 7,500 kilometers and an ambitious vision for self-reliance under the “Atmanirbhar Bharat” initiative, India aims to strengthen its indigenous shipbuilding capabilities. However, one of the critical challenges impeding growth is the shortage of skilled manpower and specialized talent.
- Talent Shortage in Niche Skills Shipbuilding is a complex, multidisciplinary domain involving naval architecture, marine engineering, structural design, systems integration, and precision manufacturing. There is a notable scarcity of professionals with expertise in welding, composite fabrication, CAD/CAM design tools, and advanced systems integration.
- Ageing Workforce and Slow Replacement Cycle Many of India's big shipyards have an ageing workforce with delayed induction of young professionals. The knowledge transfer and skill continuity are often disrupted, leading to operational inefficiencies and a widening skills gap.
- Lack of Industry-Academia Collaboration Unlike global leaders like South Korea and Japan, India is yet to achieve robust partnerships between academia and shipyards. As a result, curricula remain outdated, internships limited, and fresh graduates ill-prepared for real-world challenges. This disconnect hampers the employability of engineering and technical graduates.
- Geographic and Lifestyle Constraints Most shipyards are located in port cities such as Mumbai, Kochi, Visakhapatnam, and Kolkata. The demanding work environment, long hours, and relocation requirements deter talent—particularly younger professionals—from entering or continuing in the sector.
- Revamped Shipbuilding Financial Assistance Policy (SBFAP 2.0) - Budget 2025–26: SBFAP 2.0 was launched under the Union Budget, elevating the subsidy outlay to around ₹18,090 crore. It aims to position India among the top five global shipbuilding nations by 2047 and to support the Maritime Amrit Kaal Vision 2047.
- Maritime Development Fund (MDF) – ₹25,000 Cr (~$3 bn) - February 2025: Finance Minister announced a ₹25,000 crore Maritime Development Fund. The government will contribute 49%, with private and port-sector co-investment. Themes include financing infrastructure, supporting shipbreaking, and shipping clusters.
- Right of First Refusal (RoFR) Revision – September 20, 2023 - Updated tender rules now prioritize contracts as: (a) Indian-built, flagged, and owned, (b) Indian-built, Indian-flagged, IFSCA-owned, and so on through five levels. This underpins the “Make in India” drive within shipbuilding
- Major Defence Ship Orders:
(a) 11 Next-Generation Offshore Patrol Vessels (NGOPV) for Indian Navy (signed March 2023)
(b) Next-Generation Missile Vessels (NGMV): 6 advanced corvettes ordered in March 2023
(c) Samarthak Multi-Purpose Vessels by L&T, launched 2024–25.
(d) Pollution Control Vessels by Goa Shipyard launched in 2024
- Maritime Skill Development Institutes - Industry and academia should expand and upgrade dedicated maritime training institutes. Introducing skill certification programs in high-demand areas such as underwater welding, robotics in shipbuilding, and maritime cybersecurity will make the workforce future-ready.
- Promote Private Sector Participation and Startups - Encouraging private sector shipbuilders and marine technology startups through incentives and PPP models will create more dynamic and agile hiring practices. These entities are more open to flexible roles, contract-based hiring, and lateral induction.
- Leverage Executive Search Firms with Domain Expertise - Specialized HR consultancy firms like QSS Global with experience in aerospace, defence, and marine engineering domains can help in identifying and onboarding talent that fits both skill and cultural requirements. These firms also bridge the gap between traditional PSU recruitment and modern workforce expectations.
- Invest in Apprenticeships and On-the-Job Training - Embedding structured apprenticeship programs within shipyards and offering clear career progression paths will attract and retain young professionals. These should be incentivized through stipends, certifications, and government recognition.
- Digital Platforms for Maritime Hiring - Development of dedicated online platforms for maritime and shipbuilding jobs, akin to Naukri or LinkedIn but industry-specific, could help match niche talent with employer demand across India and overseas markets.
India’s shipbuilding sector stands at a critical juncture. To achieve global competitiveness and self-reliance, the country must overhaul its approach to talent acquisition and retention. A concerted push involving policy support, institutional reform, and industry collaboration can help overcome the hiring bottlenecks and unlock the full potential of India’s maritime capabilities.
