India aims for 5% share in world shipbuilding

Singapore : The Indian shipbuilding industry currently accounts for about 1 per cent of the global shipbuilding market and is targeting a world share of 5 per cent by 2017, the union shipping minister said here on Tuesday.

Addressing a Ports & Maritime Industry Seminar in Singapore, Shipping Minister G K Vasan said India?s high growth potential was due to certain ?inherent strengths? like low labour cost, strong domestic demand, a well established steel and manufacturing industry and availability of technically qualified manpower.

?I firmly believe that India and Singapore have tremendous scope for partnership in […] areas such as Port development, cruise shipping, bunkering and ship building, ship repair etc,? he said.

Vasan also said that to provide a fillip to port development in the country, the Government of India had prepared the National Maritime Development Programme for the major ports. Under the programme, 276 port projects have been identified with an estimated investment of USD 20.8 billion.

?Private partnership is the key feature of the port development program and we are expecting much of the investment to come in from private sector with a high proportion from overseas investors,? he said.

The minister said that owing to a favourable and investor friendly policy framework which includes things like 100 percent foreign direct investment allowed in shipping and port sectors, the development program has attracted interest from many overseas investors.

?I urge you to participate closely in India?s Port and Shipping development programme as an active partner. I can assure you of all support from my government,? said

He said the bilateral trade between the two nations has been growing rapidly and has reached USD 14.05 billion in 2009-10.

?Singapore is also the second largest investor in India. India has attracted cumulative investments of over USD 11.13 billion from April 2000 to June, 2010,? said the minister.