India eyes expanded shipbuilding ties with Japan amid rising energy demand

India is eyeing deeper collaboration with Japanese companies in the shipbuilding sector, as New Delhi looks to invest billions of dollars to expand its fleet amid rising demand for energy transport in a rapidly evolving global energy landscape, Petroleum Minister Hardeep Singh Puri said May 5.

In addition, the two countries are also looking at opportunities to collaborate across the entire energy value chain, as the push for energy security and cleaner energy creates new investment prospects, Puri said after holding talks in New Delhi with a visiting Japanese delegation that included Takayuki Kobayashi, a member of the House of Representatives and chairperson of the Policy Research Council of Japan's Liberal Democratic Party.

"We had a productive discussion on strengthening the India and Japan strategic partnership, enhancing cooperation for a secure and sustainable energy future, and exploring new avenues of collaboration in the shipbuilding sector," Puri said in a social media post. "As India advances on its ambitious path toward energy self-sufficiency, there are significant opportunities for mutually beneficial partnerships."

The pledge to deepen the energy partnership between India and Japan follows a visit by Puri to Japan in November 2025, during which both countries discussed ways to collaborate on building secure, sustainable and future-ready energy systems. Building on significant progress in public and private investment flows from Japan to India since 2022, an ambitious new target of $68 billion in private investment has been set for the near future, he said.

With nearly 20% of global ships expected to originate from or be destined for India over the next 15 years, Puri last November called for strategic cooperation with countries such as Japan and South Korea. As a major energy importer, India already spends $5 billion-$8 billion annually on freight.

The oil and gas sector alone accounts for nearly 28% of India's total trade by volume, making it the largest single commodity handled by ports. India currently meets about 88% of its crude oil needs and 51% of its gas requirements through imports, underscoring the critical role of the shipping industry in ensuring the country's energy security, Puri said.

Future potential

India is creating over $500 billion in investment opportunities across exploration and production, LNG, city gas distribution, hydrogen, shipping and new fuels, offering significant potential for Japanese investors. Japan, in turn, brings cutting-edge technology, advanced industrial systems, expertise in high-quality infrastructure and global leadership in green and environmental technologies, making the partnership inherently complementary, Puri said.

According to S&P Global Energy CERA, India's shipbuilding industry accounts for less than 1% of the global shipping market. This contrasts sharply with China, which holds a 61% share of the order book in major commercial shipping segments.

South Korea and Japan also have significant global influence, with advanced technological capabilities and strong export pipelines. India's commercial fleet is much smaller than China's large merchant marine, underscoring the country's growth potential in shipyards.

India has pledged to secure 1,000 commercial ships over the next decade as part of a national push to expand its shipbuilding industry and maritime sector, according to Rahul Kapoor, head of shipping and metal analytics at CERA.

New Delhi is also promoting the development of integrated shipbuilding clusters -- industrial parks with state-of-the-art facilities and skill-development centers designed to stimulate innovation and productivity.

India plans to create eight maritime clusters, comprising five new facilities and three expanded ones. Backed by state governments and with pre-secured land, these clusters will host activities ranging from manufacturing and equipment production to insurance and leasing services, Kapoor said.