Why in the News
According to a media report citing BIMCO chief shipping analyst Niels Rasmussen, the order book of Indian shipyards stood at 1.1 million Compensated Gross Tonnage (CGT) on 1 September 2026. This is only 0.5% of the global total, and India ranked 12th in the world.
Key Facts
- India's position: According to Rasmussen, India is behind China, South Korea, Japan, Italy, Russia, France, Vietnam, Germany, the Philippines, the United States and the Netherlands.
- Coming activity: Deliveries scheduled for 2026-2030 are equal to almost double the tonnage delivered in 2021-2025. This volume can rise if more orders are placed during this period.
- Government package: The Centre's Rs 69,725 crore shipbuilding package aims to make India one of the world's top 10 shipbuilding countries by 2030 and top 5 by 2047.
- Global order book: On 1 September 2026 it stood at a record 203.2 million CGT, 13% higher than a year earlier. The previous peak was 195.4 million CGT in 2008.
- China's dominance: Over the past one year, 74% of the tonnage contracted worldwide went to China. China's share of the global order book is 64%, South Korea's 19% and Japan's 6%. In each of the six major cargo segments (container ships, tankers, dry bulk etc.), China holds more than 72% of the orders. Container ships alone account for 30% of the global tonnage on order.
- Capacity pressure: Chinese shipyards are set to deliver a record 44 million CGT in 2028, against 22.7 million CGT in 2025. According to Rasmussen, the capacity expansion needed for this raises the risk of under-utilised capacity if orders weaken in future.
From the Exam's Perspective
Prelims: The meaning of CGT, the target years (2030 and 2047) of the Rs 69,725 crore package, and the nature of BIMCO.
Mains: Self-reliance in the maritime sector, the strategic importance of shipbuilding, and the risks linked to one country's dominance in the global market.
Mains Practice Question
Discuss the challenges facing India's shipbuilding ambitions. Amid the dominance of a few countries in the global order book, what can India do to raise its share? (250 words)
Sources and Limits
- The Hindu, 22 October 2026 (read): Indian shipyards double delivery pipeline, but still hold only 0.5% of global orders
- Limits: All figures are based on the statements and data of the BIMCO analyst quoted in the said report. We have not directly seen BIMCO's original data source.
Prelims Practice Questions
Question 1. On 1 September 2026, the order book of Indian shipyards was approximately what share of the global total?
(a) 0.5%
(b) 5%
(c) 12%
(d) 19%
See Answer and Reason
Answer: (a). According to the report, India's order book of 1.1 million CGT was only 0.5% of the global total.
Question 2. What is the stated target of the Centre's Rs 69,725 crore shipbuilding package, as per the report?
(a) To become a top 5 shipbuilding country by 2030 and top 3 by 2047
(b) To become a top 10 shipbuilding country by 2030 and top 5 by 2047
(c) To become a top 10 shipbuilding country by 2028
(d) To become the largest shipbuilder by 2047
See Answer and Reason
Answer: (b). According to the report, the package aims to bring India among the top 10 shipbuilding countries by 2030 and the top 5 by 2047.
Question 3. Consider the following statements about the global shipbuilding order book mentioned in the report:
Statement-I: On 1 September 2026, the global order book was at a record level of 203.2 million CGT.
Statement-II: China's share of the global order book is 64%.
Which of the statements given above is/are correct?
(a) Only I
(b) Only II
(c) Both I and II
(d) Neither I nor II
See Answer and Reason
Answer: (c) Both I and II. According to the report, the global order book stood at a record 203.2 million CGT, and China's share in it is 64%.