In the spotlight: Ship Stocks in India!
Being the major player in the global shipbuilding market, India has a long history of constructing ships.
Government initiatives boosting the industry
The strategically important shipbuilding industry, which significantly contributes to energy security, defence, and the growth of the heavy engineering industry, has the potential to boost the industry's contribution to the national GDP. The government's emphasis on encouraging domestic shipbuilding and lowering reliance on imports is what primarily drives the shipbuilding market in India. The industry is being backed by government initiatives like the ‘Make in India’ campaign and the ‘Sagarmala’ project.
By establishing the ‘Green Tug Transition Programme’ (GTTP) and hoping to become a global hub for green ship by 2030, India is attempting to take the lead in the global shipbuilding market.
The GTTP will initially focus on making green hybrid tugs before transitioning to alternative fuels like methanol, ammonia, and hydrogen. India has several shipyards capable of producing a broad range of vessels such as bulk carriers, tankers, container ships, and offshore vessels. Among the top shipbuilding companies in India by market capitalization are Mazagon Dock Shipbuilders Ltd, Cochin Shipyard Ltd, Garden Reach Shipbuilders & Engineers, and VMS Industries Ltd.
Stock price movements
The majority of shipbuilding stocks gained momentum in Friday's trading session. Shares of Garden Reach Shipbuilders & Engineers Ltd soared more than 5% today, delivering nearly 100% returns over the last year. Garden Reach Shipbuilders & Engineers Ltd is a leading shipbuilding company in India that is administered by the Ministry of Defence. It mainly serves the shipbuilding needs of the Indian Navy and the Indian Coast Guard. Shares of Cochin Shipyard Ltd and Mazagon Dock Shipbuilders Ltd climbed by 3.59% and 1.56%, respectively.
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