Self-reliance is a milestone; global competitiveness is the next leap. Critically analyse the challenges facing Indian defence shipyards.

The launch of FSS-1 'Surya', India's first fleet tanker of 44,000 tons designed and built in India, at Hindustan Shipyard Ltd (HSL) [1][2] shows that India can build complex naval ships. Yet India holds less than 1% of global shipbuilding [3]. To compete globally, its shipyards must fix deep weaknesses.

Self-reliance: the milestone

• Indigenous design: HSL designed the five-ship, ~₹19,000 crore FSS programme itself, which will create ~168.8 lakh mandays of work [2].
• Infrastructure: Slipway-4 was upgraded for ships up to 45,000 DWT, and a 300-tonne Goliath crane was built under Make in India [1].
• DPSU reform: Miniratna Category-I status (2025) gives HSL more freedom to manage itself [1].
• Public–private model: two of the FSS are partly built at L&T Kattupalli [2].

Challenges to global competitiveness

• Chronic delays: the CAG found that lead warships from DPSU yards came 4–5 years late because drawings were finalised late, steel arrived late and yards lacked infrastructure [4]. New slipways fix only the last of these causes.
• Cost overruns: costs of Project 17 rose 260% and Project 15A 226% [4].
• Weak project management: HSL's INS Sindhukirti refit was due in 2009 but ran on to 2015. Its cost rose from ₹629.50 crore to ₹990.52 crore, and the yard was short of manpower [5].
• Capacity limits: HSL subcontracted work to L&T to meet timelines, which suggests it could not deliver all five ships on its own [2].
• Uneven demand: the Navy had 138 vessels against a requirement of 212 [6], so tankers compete with warships for money. Navy orders also come irregularly, leaving workers and MSME suppliers idle between contracts.
• Tight timelines: FSS-1 must finish outfitting and sea trials before deliveries begin in mid-2027 [2].

Way forward

• Freeze designs before steel cutting on later ships [4].
• Publish milestones for every ship so that delays show up early.
• Win commercial orders for the 45,000 DWT slipway between Navy contracts [1].
• Build an industrial cluster: link MSMEs, universities and startups to make Visakhapatnam a Maritime Industrial Hub [1].

The FSS programme proves that India can design and build large ships. Competitiveness now depends on delivering on time and within cost. Firm designs, open milestone tracking and a mix of defence and commercial orders can take shipyards like HSL towards the Maritime Amrit Kaal Vision goal of being a top-five shipbuilding nation by 2047 [3], in line with Aatmanirbhar Bharat.