INDUSTRY OUTLOOK

Strategic Importance

Critical for national securityand commercial maritime trade.

Integral to India’s maritime defence strategy andblue economy plans.

Defence Shipbuilding Growth

Major driver:Indian Navy & Coast Guard modernization programs.

Orders fornext-gen offshore patrol vessels, frigates, pollution control ships, submarinesboosting demand.

Increased budget allocation for defence capital expenditure by Government of India. .

Commercial & Export Opportunities

Growth in port infrastructure and coastal shipping (Sagarmala, Bharatmala projects).

Exports ofpatrol vessels and tugsto friendly nations (e.g., Mauritius, Sri Lanka, Myanmar).

Global demand formedium and small vessels is rising in developing nations.

Government Support

Shipbuilding Financial Assistance Policy (2016–2026): up to 20% subsidy on contracts.

Tax incentives, duty exemptions, and priority to Indian shipyards in defence tenders.

Investment in infrastructure modernization(dry docks, ship repair hubs).

Technological Trends

Shift toward modular construction techniques to reduce build time.

Adoption of green propulsion (electric, LNG, hybrid) and smart ship technologies.

Focus onindigenous design capabilitiesto reduce import dependence.

Challenges

Intense competition from China, South Korea, and Japan with economies of scale.

Limited financing options and long project execution timelines.

Shortage of skilled workforce in specialized marine engineering and design.

Outlook

Expectedsteady growth (8–10% CAGR)over next 5–7 years.

Defence segment to remain dominant revenue driver,with commercial and repair services growing steadily.

India likely to emerge as a regional hub for medium-sized defence and patrol vessels.

Latest shareholding pattern of Goa Shipyard Ltd.