INVC NEWS
New Delhi / Beijing : The Chinese economy has faced numerous challenges in recent years, with markets slowly closing their doors to Chinese products. Following the United States, now even European markets have started imposing restrictions on Chinese goods, further impacting China’s economic stability. One such example is the European Union’s 40% tax imposed on Chinese-made electric cars, forcing President Xi Jinping to look toward new markets like Africa to sustain the country’s weakening economy. However, despite these setbacks, China remains a leader in one key sector—green energy shipments.
China’s dominance in green shipbuilding is unmatched, as it has now captured a whopping 70% of global green ship orders. This achievement highlights China’s stronghold in the sector, leaving not only India but the entire world lagging behind in this race.
China’s Success in Green Energy Shipbuilding
Over the first three quarters of 2024 (January to September), China has constructed 36.34 million deadweight tons (DWT) of ships, which marks an impressive 18.2% increase compared to the previous year. The majority of these vessels are green energy ships, designed to operate on alternative fuels like LNG (liquefied natural gas), hydrogen, and methanol, which aligns with the global push toward sustainability and decarbonization in the maritime sector.
The demand for eco-friendly shipping solutions is rising worldwide, driven by international regulations that are increasingly focused on reducing carbon emissions. China has successfully capitalized on this trend, becoming the leading force in green shipbuilding. This dominance is largely due to China’s massive investments in research, development, and shipyard modernization. Its strategic foresight has allowed it to take a commanding lead in the global green shipping market.
India’s Shipbuilding Sector: Progress and Challenges
On the other hand, India’s position in the green energy shipment market remains underdeveloped. While India is making strides in various sectors and its economy is projected to grow at a rapid pace of 7% in 2024-25, its share in green shipbuilding is still relatively small compared to China’s dominant 70% share.
However, the Indian government recognizes the immense potential of green shipbuilding and has laid out an ambitious plan to transform India into a global hub for green ships. By focusing on alternative energy solutions, environmentally friendly technologies, and sustainable shipbuilding, India aims to become a key player in the global green energy shipping sector by 2030.
Government Initiatives for Green Shipbuilding in India
The Government of India has been actively promoting investments in alternative fuels and green energy. Major initiatives are being undertaken to attract foreign investment and facilitate technology transfer from leading Japanese and South Korean shipyards, which are well known for their expertise in green shipbuilding. By leveraging these collaborations, India plans to modernize its shipbuilding infrastructure and enhance its global competitiveness.
The Indian government’s roadmap includes:
- Upgrading shipyards: Modernizing existing shipbuilding facilities and developing state-of-the-art infrastructure to build green vessels that operate on alternative fuels.
- Technological partnerships: Establishing strategic partnerships with foreign nations, particularly Japan and South Korea, to gain access to cutting-edge green shipbuilding technologies.
- Sustainability focus: Ensuring that all new shipbuilding projects comply with international sustainability standards, including the use of eco-friendly fuels such as LNG, hydrogen, and ammonia.
- Economic goals: Setting ambitious targets for the future, with a goal of becoming one of the top shipbuilding nations by 2030, and entering the top five shipbuilding countries by 2047.
The Race Between China and India
While China continues to dominate the global green shipbuilding industry, India has immense potential to catch up in the coming years. China’s shipbuilding industry is far more mature, boasting decades of experience, government-backed funding, and strong global demand for its green ships. As China looks toward Africa to secure new markets for its shipbuilding sector, it remains a formidable player with an established leadership in global green ship orders.
However, India’s rapidly growing economy and the government’s focus on green energy present a significant opportunity for the country to challenge China in this sector. The global transition toward clean energy and decarbonization aligns well with India’s aspirations in green shipbuilding. With proper investment, technological innovation, and strategic foreign partnerships, India could soon become a strong competitor in green shipbuilding.
India’s Long-Term Vision for Green Shipbuilding
India has set long-term objectives to strengthen its shipbuilding industry and make it a cornerstone of the nation’s sustainable development strategy. By focusing on building ships that meet international environmental standards, India aims to become a leading exporter of green ships to markets worldwide.
India’s shipbuilding sector also benefits from the country’s strategic geographic location, providing easy access to important shipping routes and global markets. This positions India to attract international clients looking for eco-friendly shipping solutions, thereby expanding its share of the global green ship market.
India’s Potential to Compete with China
While China continues to lead in green energy shipbuilding, India’s efforts to build a robust and sustainable shipbuilding industry are well underway. With its growing economy, strategic government initiatives, and partnerships with technologically advanced nations, India is laying the groundwork to become a global leader in green shipbuilding by 2030.
India’s goal of ranking among the top five shipbuilding nations by 2047 is ambitious but achievable, provided it maintains its focus on green technologies and sustainable development. Though China may currently hold the upper hand with its 70% share in the global green ship orders, India’s forward-thinking approach in green shipbuilding gives it a strong chance to close the gap in the years to come.
