- HD Hyundai selects Thoothukudi, boosting Tamil Nadu’s shipbuilding ambitions.
- Strategic location and infrastructure make Thoothukudi ideal for a world-class shipyard.
- Shipbuilding promises strong job creation and major economic benefits for the region
South Tamil Nadu is poised to play a significant role in India’s shipbuilding goals as HD Hyundai, a leading global shipbuilder, selected Tamil Nadu for a proposed large shipyard, highlighting strong support for the state’s industrial and maritime initiatives.
The South Korean group's choice to establish the new shipbuilding cluster in Thoothukudi illustrates what the Tamil Nadu government calls a combination of clear policy, coastal infrastructure, and implementation efficiency. The deal was signed with Chief Minister M K Stalin, Industries Minister T R B Rajaa, and high-ranking officials from HD Korea Shipbuilding and Offshore Engineering present.
For Tamil Nadu, the initiative strengthens a sustained endeavor to establish itself as a center for high-value maritime production, as India aims to enhance local shipbuilding capabilities and lessen dependency on imports.
Thoothukudi’s choice was influenced by a combination of geography and economics. The deep-water port, advantageous weather conditions, and current industrial foundation offer what officials call a distinct route for a world-class shipyard, backed by proposed investments in port and logistics infrastructure. The district has become a central hub for the industrial drive of southern Tamil Nadu, covering energy, ports, and manufacturing.
From the viewpoint of HD Hyundai, this action is a component of a wider international strategy. While addressing the audience, Hannae Choi, Senior Vice President overseeing global shipbuilding at HD Hyundai Group, expressed that the India project symbolized “the start of a mutual aspiration” for the shipbuilding sectors in India and Korea.
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Among the team, the partnership has been named the “SMITH Project” — Shipbuilding Make in India Together with Hyundai, “But standing here in Tamil Nadu,” Choi said, “it is time to say: Shipbuilding Make in Tamil Nadu with Hyundai.”
Beyond the headline investment, the State government is emphasizing the sector’s wider economic impact. Shipbuilding has one of the highest employment multipliers in manufacturing, often estimated at around 6.4 times, meaning one direct job can support nearly six ancillary jobs across services, logistics and component manufacturing. Around 60–65 per cent of value addition in shipbuilding typically comes from ancillary and supplier industries.