360° UPSC Mains Analysis
Military strength doesn’t come from dependence on global markets, India seeks to become defence manufacturer: PM Modi
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Locations
On the Map
Syama Prasad Mookerjee Port, Kolkata, West Bengal, India
Climate & Geology
The region of West Bengal and Kolkata experiences a tropical wet-and-dry climate (Aw) heavily influenced by the Southwest Monsoon (June to September). Geologically, it lies on the Bengal Basin, a thick sedimentary basin prone to high seismic risk (Zone III/IV) and frequent tropical cyclones and tidal surges from the Bay of Bengal.
Physical Context
India occupies a strategic position in the Indian Ocean Region (IOR), bounded by the Arabian Sea to the west, the Bay of Bengal to the east, and the Indian Ocean to the south. West Bengal, situated in eastern India, features the vast Ganges-Brahmaputra delta and borders the Bay of Bengal, providing a critical maritime gateway to Southeast Asia.
Resource Significance
The Hooghly River and the Bay of Bengal serve as vital maritime trade routes, facilitating the transport of coal, iron ore, and petroleum products. The region is rich in alluvial soil supporting intensive agriculture, while the maritime infrastructure under the Sagarmala Programme (launched in 2015) and the ₹70,000 crore Shipbuilding Financial Assistance Package (approved in 2026) enhances industrial expansion and blue economy potential.
Sources consulted
Institutions
Acts & Statutes
Judicial Precedents
Governance Framework
Under the Seventh Schedule of the Constitution of India, 'Defence of India' (Entry 1), 'Naval, military and air forces' (Entry 2), and 'Major Ports' (Entry 27) fall exclusively under the Union List (List I). Consequently, the Central Government possesses sole legislative and executive jurisdiction over naval commissioning, defence indigenisation policies, and major port administration, while coordinating with coastal states for broader maritime and logistics development.
Constitutional Articles
Trade Angle
Currently, foreign vessels handle approximately 95% of India's import-export (EXIM) trade, with the share of EXIM cargo carried on Indian-flagged ships dropping to just 5% in recent years. By boosting domestic shipbuilding and ship ownership, India aims to enter the top 10 global shipbuilding nations within five years, reducing vulnerability to global supply chain disruptions and saving billions in foreign exchange.
Macro Impact
The ₹69,725 crore (often cited as ₹70,000 crore) maritime package aims to reduce India's heavy reliance on foreign vessels, which currently handle about 95% of its import-export trade, thereby improving the Current Account Deficit (CAD) by reducing foreign exchange outflows on freight. The domestic shipbuilding push is projected to generate ₹4.5 lakh crore in investment and create over 2 crore direct and indirect jobs over five years, boosting GDP growth. Additionally, the high employment multiplier of 6.4 in the shipbuilding sector will stimulate regional coastal economies.
Key Indicators
Sectoral Impact
The secondary (manufacturing) sector will see a significant boost, particularly the domestic shipbuilding and defence manufacturing industries, with the commissioning of three indigenously built naval platforms (INS Dunagiri, INS Sanshodhak, and INS Agray) featuring over 75% indigenous content. The tertiary sector, specifically maritime logistics, port services, and financial services, will benefit from the establishment of the ₹25,000 crore Maritime Development Fund (MDF) and the ₹24,736 crore Shipbuilding Financial Assistance Scheme (SBFAS).
Schemes & Policies
Livelihood Impact
The maritime and shipbuilding package is projected to generate approximately 2 crore direct and indirect jobs over five years, leveraging the sector's high employment multiplier of 6.4. The construction of the three commissioned naval vessels alone involved over 200 MSMEs, strengthening local supply chains and boosting wages in coastal industrial clusters. Improved port-led infrastructure under the Sagarmala Programme will lower logistics costs, indirectly reducing consumer prices for imported and domestic goods.
Sources consulted
Background
During the pre-colonial and early colonial eras, India possessed a highly advanced and globally competitive shipbuilding industry, particularly in centers like Bombay, Surat, and Bengal. However, to protect British shipbuilders from superior Indian craftsmanship and cheaper teak wood, the British Parliament enacted protectionist laws, notably the Registry Act of 1814, which extended the British Navigation Acts to Indian-built ships and stripped them of British registry privileges. This systematic de-industrialization forced independent India to start almost from scratch, inheriting a navy heavily dependent on foreign imports, primarily from the United Kingdom and later the Soviet Union.
Key Events
Policy Evolution
Post-independence, India initially relied on the "buyer's navy" model, importing warships from the UK, but shifted toward domestic construction with the acquisition of the Mazagon Dock in 1960 and the commissioning of the first indigenously built frigate, INS Nilgiri, in 1972. The 1960s and 1970s saw the establishment of dedicated naval design bureaus, laying the foundation for indigenous warship design. In the 21st century, policies transitioned from simple licensed production to strategic self-reliance, culminating in the "Make in India" initiative (2014) and the "Aatmanirbhar Bharat" vision (2020), which mandated high indigenous content in naval acquisitions and prioritized domestic shipyards.
Historical Parallels
The current push for naval self-reliance mirrors the Chola Empire's maritime expansion in the 11th century under Rajendra Chola I, where a powerful, domestically built merchant and military fleet secured trade routes across the Indian Ocean. It also parallels the United States' transition in the late 19th century from a secondary naval power relying on European designs to a global powerhouse through the 'New Navy' program, which mandated domestic steel production and shipbuilding.
Freedom Movement Link
The quest for maritime self-reliance is deeply rooted in the Swadeshi Movement (1905), during which V.O. Chidambaram Pillai launched the Swadeshi Steam Navigation Company in 1906 to challenge the British monopoly on shipping and assert India's economic sovereignty.
Flora & Fauna
Ecology Impact
The commissioning of naval vessels in Kolkata and the expansion of maritime infrastructure under the Sagarmala project directly impact the fragile coastal and marine ecosystems of the Bay of Bengal and the Sundarbans Biosphere Reserve. Increased shipping traffic, dredging of navigational channels, and port expansion can lead to habitat fragmentation, coastal erosion, and destruction of mangrove ecosystems. Additionally, underwater noise pollution from naval operations can disrupt marine mammals.
Science & Tech Angle
The vessels utilize advanced technologies such as hydrographic surveying systems (Multi-Beam Echo Sounders and Autonomous Underwater Vehicles on INS Sanshodhak) and active/passive sonar systems (DRDO-developed Abhay hull-mounted sonar on INS Agray) which emit acoustic waves. Additionally, INS Dunagiri incorporates stealth technology, including radar cross-section (RCS) reduction and acoustic silencing, to minimize its physical and electronic signatures.
Climate Change Link
Maritime transport and shipbuilding are significant contributors to global greenhouse gas (GHG) emissions, which connects to India's Nationally Determined Contributions (NDCs) under the Paris Agreement. The adoption of green shipping initiatives and building vessels like INS Sanshodhak in compliance with MARPOL standards help mitigate operational emissions and align with the International Maritime Organization's (IMO) target of achieving net-zero GHG emissions from international shipping by or around 2050.
Sustainable Development
The maritime and shipbuilding sector links directly to SDG 14 (Life Below Water) by requiring sustainable management of marine resources, and SDG 9 (Industry, Innovation, and Infrastructure) through indigenous, resilient manufacturing. It also supports SDG 13 (Climate Action) by integrating energy-efficient designs and green shipping practices to reduce the carbon footprint of the maritime industry.
International Frameworks
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