GRSE Delivers Three Frontline Warships to Indian Navy

On April 2024, Garden Reach Shipbuilders & Engineers Ltd (GRSE), a premier defence shipyard under the Ministry of Defence, delivered three frontline warships to the Indian Navy at Kolkata. The consignment includes two Anti-Submarine Warfare Shallow Water Crafts (ASWSWCs) and one Survey Vessel, all equipped with indigenous weapons and sensors developed by the Defence Research and Development Organisation (DRDO) (The Hindu, April 2024). These warships are part of a ₹10,000 crore contract awarded in 2018 and signify a major milestone in India’s push for self-reliance in naval shipbuilding.

The delivery enhances India’s strategic autonomy by reducing dependency on foreign platforms and boosting maritime security amid evolving regional threats, particularly in the Indo-Pacific. It also reflects the progress under the Make in India initiative, aiming to increase indigenous defence manufacturing and reduce foreign exchange outflow.

Legal and Constitutional Framework Governing Defence Shipbuilding

Defence manufacturing falls under the Union List as per Article 246 of the Constitution, empowering Parliament to legislate on defence matters. The Defence Production Act, 1950 regulates production of defence equipment, including warships. The Indian Navy Act, 1957 (Sections 3-5) governs naval operations and commissioning of vessels. Acquisition and procurement follow the Defence Procurement Procedure (DPP) 2020, which mandates preference for indigenous products under the Public Procurement (Preference to Make in India) Order, 2017.

• Article 246: Union List entry for defence manufacturing
• Defence Production Act, 1950: Licensing and control of defence production
• Indian Navy Act, 1957: Legal framework for naval operations
• DPP 2020: Procurement norms emphasizing Make in India
• Public Procurement Order 2017: Preference to indigenous defence products

Economic Dimensions of Indigenous Warship Production

The Indian Navy’s capital budget for 2023-24 stands at approximately ₹35,000 crore (Defence Budget 2023-24). GRSE reported a turnover of ₹2,800 crore in FY 2022-23, largely driven by naval shipbuilding contracts. Indigenous warship production reduces foreign exchange outflow by an estimated $500 million annually (MoD report 2023). The sector is projected to grow at a 12% CAGR till 2030, supported by government policies and private sector participation (FICCI Defence Report 2023).

• ₹10,000 crore contract awarded to GRSE in 2018 for three warships
• Make in India aims to increase defence manufacturing GDP share from 1.5% to 5% by 2030
• Reduction in import dependency saves approximately $500 million annually
• Defence shipbuilding sector CAGR projected at 12% till 2030
• GRSE’s turnover ₹2,800 crore in FY 2022-23, reflecting scale-up

Institutional Roles in Indigenous Naval Shipbuilding

GRSE is the primary shipyard responsible for the construction of these warships, contributing over 60% of India’s naval shipbuilding capacity (GRSE Annual Report 2023). The Indian Navy operates and commissions these vessels, aligning with its vision to achieve 70% indigenous fleet composition by 2030. The Ministry of Defence formulates policies and oversees procurement. DRDO provides indigenous weapons and sensor technologies integrated into the warships. The Directorate General of Naval Design (DGND) handles warship design and specifications, while the Shipbuilding Finance Corporation Ltd (SFCL) finances shipbuilding projects.

• GRSE: Warship construction and delivery
• Indian Navy: Operational deployment and commissioning
• MoD: Policy formulation and procurement authority
• DRDO: Indigenous weapons and sensor development
• DGND: Warship design and technical specifications
• SFCL: Financial support for shipbuilding

Data and Performance Metrics of Indigenous Warship Production

GRSE has built over 100 warships since inception, delivering 3 frontline vessels in April 2024. Indigenous warship production increased from 30% in 2010 to over 70% in 2024 (MoD report 2024). The Indian Navy aims for 70% indigenous fleet by 2030 (Indian Navy Vision 2030). The delivered vessels feature indigenous weapons and sensors developed by DRDO, highlighting technological integration.

Challenges and Gaps in India’s Naval Shipbuilding

Despite progress, India’s shipbuilding industry faces challenges integrating advanced stealth and propulsion technologies domestically. Reliance on foreign suppliers for critical components delays timelines and affects full self-reliance. Capacity constraints and technology transfer bottlenecks limit scale-up compared to China’s rapid shipbuilding expansion. Addressing these gaps is essential for India to meet its 2030 indigenous fleet target and maintain regional maritime superiority.

• Dependence on foreign technology for stealth and propulsion systems
• Delays due to technology transfer and integration issues
• Capacity constraints compared to China’s large-scale shipyards
• Need for enhanced R&D collaboration between DRDO and shipyards
• Financial and infrastructure bottlenecks in private sector participation

Significance and Way Forward

The delivery of three frontline warships by GRSE marks a tangible advancement in India’s indigenous naval manufacturing and strategic autonomy. It reduces foreign dependence, saves foreign exchange, and strengthens maritime security. To sustain momentum, India must accelerate technology transfer, invest in advanced propulsion and stealth R&D, and expand shipbuilding infrastructure. Enhanced collaboration between DRDO, shipyards, and the private sector will be critical. Achieving the Indian Navy’s 2030 vision requires addressing current gaps to compete with regional naval powers.

• Accelerate indigenous development of stealth and propulsion technologies
• Expand shipbuilding capacity through public-private partnerships
• Streamline procurement and technology transfer under DPP
• Increase R&D funding for naval platforms via DRDO and industry
• Enhance skill development and infrastructure at shipyards like GRSE