India Lands First Major International Shipbuilding Order Worth $300 million From French Giant CMA CGM

France's CMA CGM has signed a letter of intent with Cochin Shipyard Ltd to build six LNG-powered feeder container ships, marking the first-ever order by a global liner operator at an Indian yard.

The 1,700 TEU vessels are valued at around $300 million in total, representing a watershed moment for India's maritime ambitions.

The order follows meetings at CMA CGM's headquarters in France last February, including a presentation by President Rodolphe Saadé to Prime Minister Narendra Modi and French President Emmanuel Macron.

A letter of intent was signed on Tuesday (14 October), with a formal shipbuilding contract outlining technical and commercial terms to follow in the coming months.

The design is reportedly expected to draw on an existing HD Hyundai Heavy Industries platform, following Cochin Shipyard's cooperation agreement signed with the South Korean shipbuilder earlier this year.

There were follow-up sessions in India, which led to CMA CGM reflagging vessels to India for its local feeder operations.

The breakthrough comes as the government announced investments to the tune of Rs 69,725 crore for shipbuilding and maritime reforms in India this year.

These initiatives align with India's maritime vision to rank among the top 10 shipbuilding nations by 2030 and the top five by 2047. The country currently holds around one per cent of the global shipbuilding market.

The order represents a major breakthrough for India's shipbuilding industry, long seeking to win contracts from major international carriers.

India is currently ranked sixteenth in shipbuilding, but the government has committed to expanding the industry.

China accounts for 47 per cent of the global market, while South Korea holds 25 per cent and Japan 18 per cent, highlighting the scale of India's challenge to establish itself as a credible alternative.

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Also Read: India Approves Rs 69,725 Crore Package To Revitalise Domestic Shipbuilding And Maritime Sector