Why Ship Building Has Become a Profitable Business in India?

Shipbuilding is an emerging industry in Bangladesh with enormous potentials. Bangladesh has a proud history of boat building dating back from the ancient era. However, the industry has now become a booming industry in the recent past when the locally produced boats started to be exports. Ship building activity is witnessing explosive growth owing to factors such as dwindling demand, rising supply and lower prices.

The major players in the shipbuilding sector are India, Pakistan and China. Over the last few years there has been a major expansion in the export sector in these six developing nations. Shipyards in Bangladesh are witnessing an explosive growth mainly due to the opening up of sea access to the region. This has made possible the access of ships to international destinations with ease.

These efforts by the government have helped improve the connectivity between the various South Asian countries that form a triangle and is one of the major components of the global economy. Shipping activities have also played an important role in the development of the regional economy. It has been seen that shipping activities have helped boost the regional economy in several ways. Some of the major advantages associated with shipping in Bangladesh are highlighted below.

Exports- Shipping plays a vital role in the entire Vietnam growth story. It plays a pivotal role in the overall growth of the national economy. India has emerged as the biggest exporter of goods in the world. Now Bangladesh is playing a key role in the overall growth of Vietnam through its strategic partnership with India. Moreover, India's rise as a leading nation in global shipbuilding sector has ensured affordable cost of materials and supplies and thereby improving the terms and conditions of shipping from India to Vietnam.

Improved Terminology- A lot of work has been done on improving the terminologies used in the industry. Earlier the shipyards and shipbuilding industries were termed as Textile Industry and shipyards were also termed as Brush Shipyards. With time however the governments of both these countries have identified the need for minimizing confusion. They have decided to use 'shipbuilding industries' and 'textile industries' to minimize the chances of confusions in the industry.

Cost Reduction- The cost of each item manufactured by the shipyards of both India and Vietnam is quite low. This has been one of the main factors which have led to enhancing the profit margin of these industries. India's focus on increasing the shipbuilding employment has also lead to massive employment opportunities for its people. On the other hand the government policy for promoting the growth of Vietnam shipyards has led to a massive reduction in the cost of products.

Improved Technology- In the last few years India has made great technological progress. This technological progress has been one of the major contributing factors for the global economic rise. One of the most important advantages that the global market enjoys is the fact that Indian shipbuilding companies can compete with the international players in the construction of national as well as international ships.

The globalization is also one of the factors that helped India in becoming a large exporter of shipbuilding material. The global recession has not dampened the hopes of the people of India for exporting their manufactured goods overseas. The global recession though was an adverse factor but the rise of Indian Shipping firms in the global market as well as the opening of an India port in order to service the national and international demands has mitigated the situation somewhat. Moreover there are many other factors which make the competition for the export business more difficult and complex. However, with the new technology and enhanced skills of the employees of these VINES industries India can become one of the leading exporters in the global market.