BS reported that Indian shipbuilders are expected to invest INR 20,000 crore in the next five to six years to enable them grab the growing demand for ships from Japan, Korea and China. Indian shipbuilding yards have started posting good profits in the past four to five years on the back of strong demand for new ships from international operators. The scarcity of shipbuilding yards in these countries up to 2012 will help Indian shipbuilders increase their market share globally.

Today the global market leaders in ship making are China, Korea, and Japan, with China commanding a 35% market share. India's share of the global shipbuilding market is expected to increase to 5% by 2020 from the current 1%.

Mr Ray Stewart CEO of Pipavav Shipyard Ltd said that traditionally, Indian yards focused on the small and medium segments but the current orders are dominated by offshore supply of boats and bulk carriers. In the last 18 months, orders worth around USD 1 billion for building Panamax vessels have come to India.

He said that “Profitability of the yards too has gone up mainly because price of ships has doubled in the last four years. In 2006, the price of a ship increased to USD 45 million from USD 20 million.” He further added that "If the government gives back the subsidies it withdrew last August, the industry can do better.”

The central government is also planning to set up two shipbuilding yards, one each in west and east coasts, with an investment of USD 1.57 billion. The proposed investments will not only increase capacity, but will also put India on the global shipbuilding map along with other competitors in the region.