Now, the global shipbuilding industry is controlled by China, with over 50% of world ship manufacturing under its domination. Having such a vast fleet of 6,000 vessels, Beijing has a fantastic advantage in international trade.
Given such monopoly, the question is: how can Quad nations—i.e., the US, India, Japan, and Australia—match the might of China in this vital industry?
Sanjeev Sanyal, a member of the Prime Minister of India’s Economic Advisory Council, believes greater interaction among Quad countries could build the foundation for a balanced shipbuilding industry. Speaking at the Observer Research Foundation’s annual Raisina Dialogue in New Delhi with the Ministry of External Affairs as the co-host, Sanyal pointed to the synergy that might cause efficiency to become a propellant.
Focusing on India’s potential, he added, “We have some of the technology, we have the steel, we have the men.” Although India has comparative advantages in some areas, he added, the US and Japan are adept at producing high-quality engines. “For example, we can produce the hulls and then send them to the Americans for final assembly, or the Japanese can fit the software,” Sanyal proposed.
Brent Sadler, a Senior Research Fellow at The Heritage Foundation, stressed the importance of coordination among like-minded countries in a bid to sustain the maritime industrial base. He added that the US administration is also working hard towards renewing its shipbuilding base.
The Trump administration had already initiated efforts to “revive the American shipbuilding industry,” including the establishment of a new shipbuilding office and the soon-to-be-introduced Ships for America Act, which will be introduced in the coming few months.
While speaking of India’s initiative, Sanyal mentioned the seriousness of the government towards the shipbuilding sector, like the establishment of a maritime fund to build infrastructure required. He spoke of the provision of financial support in the form of long-term loans, highlighting the seriousness of the government towards this sector. “We are paying a lot of attention to this,” he claimed, being satisfied with the simultaneous efforts being made by the United States.
While the Quad nations envision strategic partnership, the chance to reshape the world shipbuilding map appears well within reach.
