India plans 62-ship investment project to shore up supply chains amid Hormuz crisis

India plans to expand its national shipping capacity by dozens of ships before the end of next March, the shipping ministry said April 29, seeking to safeguard the supply chains of the world's third-largest energy consumer in response to the Hormuz shipping crisis.

In a press statement, the Ministry of Ports, Shipping and Waterways said it is advancing a roadmap to add 62 vessels with a total of 2.85 million gross tons in an investment program of 514 billion rupees ($5.4 billion) for the fiscal year 2026-27 (April-March).

Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said an urgent expansion of India's shipping capacity in crude tankers, LPG carriers and containerships is needed while more green tugs and dredging ships are also required.

The project was unveiled following a meeting aimed at addressing supply chain issues between the shipping ministry, the Ministry of Petroleum and Natural Gas, the Ministry of Chemicals and Fertilisers, some other senior maritime and trade officials, and state-backed Indian oil companies.

"In a decisive push towards self-reliance in the maritime sector, a high-level inter-ministerial review meeting on the Strait of Hormuz situation pivoted to accelerating India's shipping capabilities," according to the statement.

Having taken control of the Strait of Hormuz following US and Israeli air strikes Feb. 28, Iran has occasionally allowed India-bound ships to use the waterway due to New Delhi's diplomatic efforts.

But cargo flows to India from the Middle East remain heavily curtailed, and two India-flagged tankers, the Sanmar Herald and the Jag Arnav, were reportedly attacked by Iranian forces when seeking to exit the strait earlier this month.

Crude and condensate exports from the Persian Gulf producers to India fell from 2.8 million b/d in February to 673,000 b/d in March, while LPG exports decreased from 712,000 b/d to 132,000 b/d, according to S&P Global Commodities at Sea.

The shipping ministry did not disclose further details on how to acquire the 62 ships. State-owned Shipping Corp. of India has a separate project to expand its fleet by 59 ships via its joint venture with government-backed oil companies, while New Delhi has aimed to make India a top-10 shipbuilding nation by 2030.

"We must act with urgency to strengthen our fleet, shipbuilding capacity, port infrastructure, and the broader maritime ecosystem," Sonowal said, underscoring the need for a coordinated national effort.