India's Shipbuilding Ambitions Need Stronger Financial Guarantees to Compete Globally.

A dedicated refund guarantee framework could strengthen buyer confidence, support large export orders and position Indian shipyards for global growth.
  India's ambition to become a major global shipbuilding hub will depend not only on manufacturing capacity but also on stronger financial support, according to Vivek Merchant, Promoter and Director of Swan Defence and Heavy Industries Limited. Highlighting the financial challenges facing the sector, Merchant said shipbuilding involves construction cycles of 18–36 months, creating significant funding gaps as shipyards invest in materials, equipment and labour before receiving milestone-based payments. He pointed to South Korea and China, where integrated financing systems and refund guarantees have helped shipbuilders secure international orders by strengthening buyer confidence. India's ₹69,725 crore shipbuilding package, including financial assistance and a Maritime Development Fund, marks an important step towards improving competitiveness. However, subsidies alone cannot address the risks associated with advance payments and delayed deliveries. The merchant called for a dedicated, large-scale refund guarantee framework aligned with multi-vessel export programmes, arguing that financial confidence will be critical to achieving India's shipbuilding ambitions by 2047.