OPINION | India’s Maritime Industry Turns Outward: Hindustan Shipyard at the Crossroads of Trade and Diplomacy at IMW 2025

by Aritra Banerjee

When Hindustan Shipyard Limited (HSL), a Mini Ratna public-sector shipbuilder under India’s Ministry of Defense, signed new agreements at India Maritime Week 2025 in Mumbai, the development resonated far beyond the docks of Visakhapatnam. It pointed to a deliberate convergence between India’s defense industrial policy and its maritime trade diplomacy, an approach that seeks to integrate public-sector capacity with international supply chains and regional partnerships.

For Europe and the wider Indo-Pacific, this evolution matters. As India accelerates its shipbuilding modernization and strengthens engagement with Gulf and Southeast Asian maritime hubs, its defense-linked shipyards are emerging as key partners for sustainability, maintenance, and regional fleet support.

A State-Run Shipyard with Global Bearings

Founded in 1941 and transferred to the Ministry of Defense in 2010, HSL has traditionally been India’s principal facility for submarine refits, fleet-support vessels, and naval auxiliaries. Its transformation from a purely military contractor into a dual-use shipyard reflects the government’s push to use defense PSUs as trade facilitators within the maritime economy.

At IMW 2025, HSL formalized several partnerships, most notably with MCI World LLC (Dubai), extending its ship repair and refit services into the Middle East and North Africa (MENA) corridor. The collaboration opens a repair-logistics arc that links India’s east coast with the Red Sea and Gulf ports, a zone long dominated by European yards.

For New Delhi, the agreement is more than a business transaction. It establishes an Indian public-sector footprint in a strategic maritime theater that bridges Asia and Europe, one where energy routes, naval deployments, and commercial fleets increasingly intersect.

Industrial Diplomacy through Green Technology

HSL’s global engagement is reinforced by its focus on green and digital technologies. During the same week, it signed MoUs with the Indian Ports Association and Lotus Wireless India Pvt. Ltd. under the Green Tug Transition Program to develop hydrogen- and electric-powered tugs. Another partnership with the Center of Excellence in Maritime and Shipbuilding (CEMS) will introduce training in AI, robotics, and additive manufacturing, integrating India’s maritime workforce into global Industry 4.0 standards.

These projects carry dual dividends: they lower emissions and position India as a technology contributor in the worldwide shift toward cleaner shipping. For foreign shipbuilders and port operators, including those in France and the EU, such initiatives create space for collaboration on green propulsion systems, automation, and digital twin design.

Europe’s own decarbonization drive and France’s leadership in maritime technology make Indo-European cooperation in this field both logical and strategically valuable.

Linking Trade Corridors and Strategic Geography

The MENA agreement gives India’s ship repair sector an entry into what analysts call the post-Suez maintenance corridor, a trade route increasingly defined by high-traffic volumes and shorter turnaround requirements. By offering competitively priced, defense-grade engineering, HSL aims to complement, not displace, existing European facilities.

For shipping companies operating between Marseilles, Jeddah, Fujairah, and Mumbai, the prospect of a state-backed Indian yard capable of handling mid-life refits or propulsion upgrades provides operational redundancy and cost efficiency. In this sense, India’s public sector is performing a diplomatic function traditionally played by private consortiums, extending national influence through dependable technical service.

Policy Integration and Financial Reform

India’s broader maritime policy framework supports this outward expansion. The government’s Maritime Amrit Kaal Vision 2047 and Shipbuilding Financial Assistance Scheme (SBFAS) aim to triple ship repair capacity within the next decade. HSL’s participation in policy consultations led by the Directorate General of Shipping reflects how defense PSUs now feed directly into financial and risk-management reforms for the sector.

For European partners, this policy clarity translates into predictable regulatory terrain, a key prerequisite for co-production, technology transfer, and foreign investment in joint maritime projects.

Indo-French and EU Opportunities

France and India have already expanded defense-industrial cooperation in aerospace, propulsion, and naval systems. The maritime green transition now provides a new domain for collaboration. French shipbuilders and classification societies, with deep expertise in low-carbon propulsion, autonomous vessel control, and certification, can find complementary ground with Indian PSUs such as HSL, Cochin Shipyard Ltd., and Garden Reach Shipbuilders & Engineers.

Partnerships in hydrogen-tug design, digital shipyard management, and port electrification could serve both commercial and strategic objectives, linking Europe’s sustainability goals with India’s push for self-reliance. Moreover, HSL’s presence in the MENA repair market offers European operators a partner aligned with democratic standards, IP protection, and transparent governance, qualities that differentiate India from certain state-backed competitors in the region.

The Wider Picture: Trade as Strategy

India’s maritime industry today sits at the intersection of commerce and security. Its shipyards, particularly those under the MoD, are increasingly being used as instruments of “industrial diplomacy”: tools to build trust, share technology, and stabilize critical sea lanes.

In the Indo-Pacific, this approach complements naval diplomacy. While the Indian Navy engages through joint exercises and humanitarian operations, its shipyards engage through industrial partnerships and service reliability. The result is a multi-layered form of influence that blends economic credibility with strategic assurance.

A Bridge between Policy and Market

HSL’s transformation captures the essence of this shift. From a domestic naval contractor, it is evolving into a state-owned integrator of maritime ecosystems, connecting shipbuilding, repair, education, and sustainability under a single institutional framework. Its projects align seamlessly with India’s export-orientation strategy, which seeks to expand defense and dual-use trade with friendly nations.

For Europe, particularly France, such developments open doors to long-term industrial cooperation in areas where technological sophistication meets strategic alignment.

As one European maritime executive in Mumbai observed during IMW 2025, “India is no longer just a market for ships; it is becoming a partner in shaping how the global shipping industry itself evolves.”

Conclusion

Hindustan Shipyard Limited’s growing international profile reflects a broader transformation in India’s defense and maritime policy, one where public-sector capacity becomes a vector of diplomacy. From Visakhapatnam to Dubai, from green propulsion to digital shipyards, the trajectory is unmistakable: India is using its state-owned industrial ecosystem to anchor partnerships, diversify trade routes, and project stability across the Indo-Pacific’s commercial waterways.

For France and Europe, engaging with that ecosystem offers both strategic and commercial dividends, a partnership grounded in sustainability, shared interests, and the future of global maritime trade.

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About Author

Aritra Banerjee is a Defence, Foreign Affairs & Aerospace Journalist and Co-Author of the book The Indian Navy @75: Reminiscing the Voyage. Having spent his formative years in the United States before returning to India, he brings a unique global perspective to his work. A graduate in Mass Media from the University of Mumbai, he holds a Master’s in International Relations, Security & Strategy from O.P. Jindal Global University, along with a CPD-accredited Professional Certificate in Strategic Communications from King’s College London (War Studies). He has contributed to national and international publications across TV, Print, and Digital platforms, reporting on major Defence, Security, and Aerospace events in India and Europe, and spending extended periods in Kashmir, engaging with communities and gaining firsthand perspectives that inform his work. Twitter: @Aritrabanned