‘India’s steel, USA’s engines, Japan’s software:’ Experts tell how Quad can counter China’s shipbuilding industry

The global shipbuilding industry today is primarily controlled by China, giving Beijing an advantageous position in world trade. Over 50 per cent of ships are currently built in China, with the second-largest economy of the world holding sway over a massive fleet of 6,000 ships.

So, how can Quad nations counter China’s dominance in this crucial industry?

Sanjeev Sanyal, a member of the Economic Advisory Council of the prime minister, Government of India, has said this can change if Quad countries manage to deepen their cooperation to build a serious shipbuilding ecosystem.

While speaking at Firstpost’s IdeasPod as part of the annual Raisina Dialogue organised by Observer Research Foundation (ORF) in partnership with the Ministry of External Affairs (MEA) in New Delhi, Sanyal said US, India, Japan and Australia can co-operate in certain areas to increase efficiency.

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Speaking of India, he said, “We have some of the technology, we have the steel, we have the men”. He added that Americans and Japanese certainly have much better-quality engines.

“For example, there are certain areas where we could maybe just build the hulls, hand it to the Americans to get it out in various ways, or the Japanese can put in the software,” Sanyal suggested.

“Quad is a natural fit,” he added.

Meanwhile, Brent Sadler, Senior Research Fellow, The Heritage Foundation US, added that the Quad can also co-operate with like-minded nations, “an informal group of nations” to “assure a growth in this critical maritime industrial sector.”

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He then highlighted several steps that the US administration is taking to boost shipbuilding in the country. He highlighted how the Donald Trump administration has announced plans to “resurrect the American shipbuilding industry”. For that purpose, the White House has created a new office of shipbuilding. He added that the US was also working on the Ships for America Act, and the legislation would be there in the coming two or three months.

Speaking about India’s focus on the shipbuilding industry, Sanyal also highlighted several steps being taken by the government of India.

He said that New Delhi was in the process of creating a maritime fund to help build infrastructure. He also talked about financial backing from the government, including in the form of long-term loans.

“So the point is we are paying a great deal of attention to this,” he said, adding, “We are very pleased to see that, America too is doing that.”