New Delhi: India's ship building and repairs industry is likely to touch Rs 9,200 crore by 2015 because of robust demand in the domestic market and adequate availability of skilled workforce, an Assocham report said.
Currently, the industry size is about Rs 7,310 crore.
The chamber said the country accounts for just about 1 percent of the global ship building industry, which is about Rs 7.3 lakh crore.
"The Indian ship-building and ship-repair industry is likely to reach Rs 9,200 crore from the current level of just over Rs 7,310 crore," it said.
The report added, "Lower costs of labour, availability of skilled workforce together with robust demand in the domestic market and a growing steel industry are certain factors that build up a strong case for the sector in India."
The global ship-building and ship-repair industry is growing at a CAGR of about 24 per cent and is likely to reach Rs 14 lakh crore by 2015 because of rising global sea borne trade, it said.
The report suggested that the government should provide fiscal incentives to develop strong research and development facilities and designing capabilities to boost the growth of the sector.
It also said the overall cargo traffic at major ports in India, which is about 600 million tonne, is likely to reach 1,230 million tonne by 2015 and 3,000 million tonne by 2020.
"For this, India needs to furbish up its ports and the whole shipping infrastructure to enhance the handling capacity and facilitate operation of larger shipments to increase its share in the global maritime business," the report said.
With about 8,000 km long coastline there are about 27 shipyards, 12 major ports and 200 ports under states’ jurisdiction in India, there is huge scope for development of the sector, it said.