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Shipbuilding Is A ‘Strategic Industry’; India Will Do Well To Learn From China’s Growth

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Shipbuilding Is A ‘Strategic Industry’; India Will Do Well To Learn From China’s Growth

Shipbuilding is our maritime sector’s ‘missed opportunity’. It needs its own ministry

by Admiral Arun Prakash (Retd)

The 2019-20 annual report of the Ministry of Shipping has a surprising admission: “While the importance of roads and railways in the economy is undeniable, there is also a greater need to encourage the maritime sector to enable it to achieve its full potential.” This uncharacteristic ‘mea culpa’, is justified by the fact that this 123-page report touches, fleetingly, upon the topic of shipbuilding, in just three pages; an indication of how little the connotations of the ‘maritime sector’ are understood in the Modi government.

A strong shipbuilding industry, a large merchant navy, efficient ports, an ocean-going fishing fleet and the ability to exploit seabed resources are critical for a nation’s sea power. India’s failure to bring focus on the shipbuilding element of its maritime sector represents a huge missed opportunity in two ways. A thriving shipbuilding industry, apart from boosting the nation’s ocean-based ‘blue economy,’ could have helped attain PM Modi’s Atmanirbhar Bharat goals. It could have skilled our youth and created job opportunities by the thousands through a complex of ancillaries. At the same time, it would have also established a sound industrial base – currently missing – for the growing Indian Navy.

China’s Build-Up of Maritime Power

China’s build-up of maritime power, unprecedented in history, is underpinned by the world’s largest shipbuilding industry. Having designated shipbuilding a ‘strategic industry,’ China lent it strong support via tax benefits, loans and subsidies. According to the 2019 UNCTAD Review of Maritime Transport, 40% of the world’s merchant shipping is Chinese-built while Japan and South Korea share 25% each. China’s emphasis on ‘civil-military integration’ has ensured that the modern infrastructure and skilled manpower of its civil shipyards directly benefit the PLA Navy’s warship and submarine-building programmes. This is the culmination of China’s decades-long strategy to build national ‘maritime power’ in a holistic manner.

Today, while China, along with Japan and South Korea, accounts for almost 90 per cent of world shipbuilding capacity, the output of Indian shipyards adds up to a minuscule 0.045 per cent. Even domestically, only 10 per cent of Indian-flagged ships are built in our shipyards because of higher costs, lengthy delivery periods and indifferent quality. The dramatic success of our Asian neighbours only serves to highlight the absence of a ‘maritime vision’ in India. This is manifest in our failure to leverage early advantages and demographic assets and create a dynamic and competitive shipbuilding and ship-repair industry.

The first Indian shipbuilding enterprise, Scindia Shipyard, was founded in 1941, by the visionary entrepreneur, Walchand Hirachand. Today, India’s private shipbuilding industry is in a state of decline and relies heavily on government contracts. Of India’s 28 shipyards, six are public sector undertakings (PSUs), two are owned by state governments, and the remaining 20 are in the private sector. Not counted here is a government-owned shipyard that builds nuclear submarines in partnership with a private-sector company.

Statistics show that nearly 90 per cent of government orders, consisting of warships and submarines for the Indian Navy and patrol vessels for the Coast Guard, are placed on the public-sector shipyards, whose order books always remain full. For reasons mentioned earlier, few shipping companies wish to order merchant ships on private Indian yards. The clear monopoly of PSUs over government contracts has ensured their well-being while depriving the private shipbuilding industry of orders as well as warship-building experience. The factors that have perpetuated this uneven playing field are symptomatic of a deeper malaise.

Shipbuilding Sector In Doldrums

A snapshot of India’s private shipbuilding sector shows that apart from mismanagement, most ship-builders are debt-ridden or function at break-even levels with hardly any of them generating profits. The three most recent and prominent casualties have been the Western India, Bharati and ABG shipyards, which have either declared bankruptcy or been ordered to liquidate themselves by the National Company Law Tribunal. India’s biggest dry-dock, capable of accommodating an aircraft carrier, was purchased by Reliance Naval and Engineering Limited in 2015. However, within five years, the shipyard has gone bankrupt and is up for sale with a debt of Rs. 9,000 crore.

This bleak picture speaks as much of venality and myopia in the private sector as of the government’s lack of a long-term vision for the maritime sector. Notwithstanding some good performers in the private sector, a few major factors have contributed to the woes of this vital industry. Prime amongst these is the government’s total indifference towards shipbuilding, when a well-thought-out scheme of subsidies, tax benefits or a ‘shipbuilding fund,’ could have made the industry competitive and attracted domestic and foreign orders. Second, it has failed to ensure a level playing field since most government orders are given to public sector shipyards by nomination. To cap it all, the absence of a complex of shipbuilding ancillary industries has imposed a further barrier on private shipyards.

Lessons From Asian Neighbours

While India can take many useful lessons from the initiative and innovation demonstrated by its smaller Asian neighbours, like South Korea, Vietnam, and the Philippines, it must draw up its own roadmap of reforms required to pull the shipbuilding industry out of its current state of stasis. To start with, the government needs to make a clear distinction between ‘shipping,’ and ‘shipbuilding.’ While shipping refers to affairs related to the merchant marine, ports and navigation, shipbuilding encompasses a whole ecosystem that deals with hull-fabrication, propulsion-machinery, electric power-generation, control-systems and electronics. One of the reasons why shipbuilding has suffered neglect is that, since Independence, it has remained subsumed within the Ministry/Department of Shipping, which itself has often been shunted between Ministries of Transport and Aviation, Surface Transport and Road Transport and Highways.

It is time to acknowledge shipbuilding as a “strategic industry,” with a vital role to play in the nation’s security as well as industrialisation and job creation, and to accord it the status of a full-fledged department or ministry. Concurrently, a strategy and road-map for shipbuilding need to be drawn up, independent of the Sagarmala Project, which has remained focused on ports. The private sector must be considered as much of a national asset and stakeholder in shipbuilding as the public sector. Its contribution will only bolster our maritime prowess.

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INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’

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INS Arihant’s Nuke-Capable K-4 Submarine-Launched Ballistic Missile ‘Ready To Roll’


NEW DELHI: India tested its nuclear capable K-4 submarine-launched ballistic missile (SLBM), designed to have a strike range of 3,500 km, for the second time in six days on Friday. The missile test, as the one conducted on January 19, was undertaken from an undersea platform in the shape of a submersible pontoon off the coast of Andhra Pradesh according to a report by Rajat Pandit of TOI.

The solid-fuelled K-4 missile is being developed by DRDO to arm the country’s nuclear-powered submarines in the shape of INS Arihant and its under-development sister vessels. INS Arihant, which became fully operational in November 2018 to complete India’s nuclear triad, is currently armed with the much shorter K-15 missiles with a 750 km range.

“The K-4 is now virtually ready for its serial production to kick-off. The two tests have demonstrated its capability to emerge straight from underwater and undertake its parabolic trajectory,” said a source.

India has the land-based Agni missiles, with the over 5,000-km Agni-V inter-continental ballistic missile now in the process of being inducted, and fighter jets jury-rigged to deliver nuclear weapons. But INS Arihant gives the country’s deterrence posture much more credibility because nuclear-powered submarines armed with nuclear-tipped missiles are considered the most secure, survivable and potent platforms for retaliatory strikes.

Once the K-4 missiles are inducted, they will help India narrow the gap with countries like the US, Russia and China, which have over 5,000-km range SLBMs. The K-4 missiles are to be followed by the K-5 and K-6 missiles in the 5,000-6,000 km range class.

The 6,000-ton INS Arihant, which is propelled by an 83 MW pressurised light-water reactor at its core, in turn, is to be followed by INS Arighat, which was launched in 2017. The next generation of nuclear submarines, currently called S-4 and S-4*, will be much larger in size.





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After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%

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After Upgradation, Sukhoi Su-30MKI Indigenisation To Reach 78%


India has received clearance to upgrade 84 Sukhoi Su-30MKI fighter jets, which will result in 78% indigenization after the upgrade

In a significant step towards bolstering its military might with indigenously developed technology, India is poised to witness its Russian-origin Sukhoi Su-30MKI fighter jets evolve into a domestic platform. Speaking at a recent lecture.

The upgrade program is being led by Hindustan Aeronautics Limited (HAL) in partnership with the Indian Air Force and other partners. The upgrade is expected to cost US$7.5 billion.

The Defence Acquisition Council (DAC) granted Acceptance of Necessity (AoN) for the upgrade. The upgrade is part of India’s efforts to improve the capabilities of its primary fighter aircraft, it refers to as the “Super Sukhoi”.

This initiative is a part of a larger effort by the Indian Air Force to modernize its ageing fleet. Air Chief Marshal Chaudhari asserted the critical role of an offensive air force as demonstrated in current global conflicts and emphasized India’s move towards an indigenized arsenal. To this end, the IAF has been proactive, from upgrading its Mirage 2000 to enhancing its MiG-29 fleet.

In summary, the IAF’s commitment to updating their combat forces with the latest technology, including shifting to fifth-generation fighter jets, ensures operational preparedness and a strong deterrence capability. The gradual indigenization of its air fleet marks a pivotal shift in India’s defence landscape, reducing dependency on foreign imports and fostering technological sovereignty.





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Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace

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Akash Weapon System Exports For The Armenian Armed Forces Gathers Pace


According to unconfirmed reports, Armenia is a top contender for an export order for Akash SAM system manufactured by Bharat Dynamics Limited (BDL).

While there is no official confirmation because of the sensitivities involved, documents suggest that the order for the same has already been placed the report further added.
There are nine countries, in turn, which have shown interest in the indigenously-developed Akash missile systems, which can intercept hostile aircraft, helicopters, drones and subsonic cruise missiles at a range of 25-km. They are Kenya, Philippines, Indonesia, UAE, Bahrain, Saudi Arabia, Egypt, Vietnam and Algeria reported TOI.

The Akash export version will also be slightly different from the one inducted by the armed forces. The 100-km range air-to-air Astra missiles, now entering production after successful trials from Sukhoi-30MKI fighters, also have “good export potential”, said sources.

Akash is a “tried, tested and successfully inducted systems”. Indian armed forces have ordered Akash systems worth Rs 24,000 crore over the years, and MoD inked a contract in Mar 2023 of over Rs 9,100 crores for improved Akash Weapon System

BDL is a government enterprise under the Ministry of Defence that was established in 1970. BDL manufactures surface-to-air missiles and delivers them to the Indian Army. BDL also offers its products for export.

Akash Weapon System

The AWS is a Short Range Surface to Air Missile (SRSAM) Air Defence System, indigenously designed and developed by Defence Research and Development Organisation (DRDO). In order to meet aerial threats, two additional Regiments of AWS with Upgradation are being procured for Indian Army for the Northern borders. Improved AWS has Seeker Technology, Reduced Foot Print, 360° Engagement Capability and improved environmental parameters.

The project will give a boost to the Indian missile manufacturing industry in particular and the indigenous defence manufacturing ecosystem as a whole. The project has overall indigenous content of 82% which will be increased to 93% by 2026-27.

The induction of the improved AWS into the Indian Army will increase India’s self-reliance in Short Range Missile capability. This project will play a role in boosting the overall economy by avoiding outgo of precious foreign exchange to other countries, increasing employment avenues in India and encouraging Indian MSMEs through components manufacturing. Around 60% of the project cost will be awarded to the private industry, including MSMEs, in maintaining the supply chain of the weapon system, thereby creating large scale of direct and indirect employment.





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