INS Arnala Shows Why Shipbuilding is India’s Multiplier Industry

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The Indian Navy today commissioned INS Arnala, the first of 16 Anti-Submarine Warfare Shallow Water Craft (ASW-SWC), at the Naval Dockyard, Visakhapatnam, in the presence of General Anil Chauhan, Chief of Defence Staff (CDS). This milestone not only marks a significant leap in India’s coastal defence capabilities but also showcases the coming of age of the country’s indigenous shipbuilding industry—a cornerstone of the ‘Atmanirbhar Bharat’ initiative in defence.

The induction of INS Arnala into active service underscores a strategic inflection point. It’s not just the arrival of a cutting-edge warship but a culmination of decades of investment, innovation, and indigenisation that have shaped India’s naval self-reliance journey. The commissioning ceremony reflected the Navy’s growing confidence in home-grown technologies and its deepening collaboration with Indian shipyards and micro, small, and medium enterprises (MSMEs).

The ‘Mother Industry’ Comes of Age

Often referred to as the “mother industry” due to its multiplier effect, the shipbuilding sector in India is now a key pillar of economic and strategic strength. With direct and indirect linkages to core industries—steel, electricals, electronics, engineering, logistics, and services—shipbuilding is uniquely positioned to drive GDP growth, generate employment, and catalyse technology development.

India’s defence shipbuilding is already delivering on that promise. Each indigenous project infuses energy into a vast network of suppliers and subcontractors, including over 300 MSMEs. The ripple effects are tangible—not just in employment but also in R&D, skill development, and export potential.

From Design to Delivery: Six Decades of Indigenous Evolution

The roots of this transformation date back to 1964, when the Indian Navy established the Central Design Organisation, now known as the Warship Design Bureau (WDB). Over the past six decades, this cradle of indigenous warship design has been instrumental in developing and delivering over 98 frontline ships, including destroyers, frigates, survey vessels, landing ships, and even India’s first indigenous aircraft carrier, INS Vikrant.

“The commissioning of INS Arnala adds to this legacy. It reinforces the Navy’s long-standing vision: that true maritime power lies not just in acquiring warships but in designing and building them indigenously,” quipped a veteran of the shipbuilding industry.

A New Generation of Warships Built in India

This year alone, the Indian Navy achieved an unprecedented milestone by inducting INS Nilgiri (the first P-17A stealth frigate), INS Surat (the last of P-15B destroyers), and INS Vagsheer (the final P-75 submarine), all in the presence of the Prime Minister at Mumbai’s Naval Dockyard on January 15. These platforms, like INS Arnala, boast over 75% indigenous content by cost—a testament to the Navy’s deep partnerships with Indian industry.

Built using DMR-249A steel developed in India and integrated with indigenously produced weapons and sensors, these ships collectively generated over 24,000 direct and indirect jobs, industry insiders revealed. They are prime examples of how defence manufacturing can translate into a powerful economic engine.

INS Vikrant: Economic Impact of a National Endeavour

The landmark INS Vikrant project, which involved over 125 Indian MSMEs and delivered 76% indigenous content, had an estimated economic impact of Rs 45,950 crore—2.3 times the project cost—according to an IIM Kozhikode study. The aircraft carrier alone generated 14,000+ direct and indirect jobs while creating long-term capabilities across the supply chain. The strategic dividends of such projects go far beyond defence—they build national competence and industrial resilience.

Atmanirbharta by Design: Strategic and Economic Imperative

The Indian Navy’s commitment to allocating a significant portion of its capital budget to domestic projects is yielding results. It has led to a self-sustaining shipbuilding ecosystem driven by private players, shipyards such as GRSE and CSL, and an expanding MSME base.

According to the Government of India’s Economic Survey 2022–23, the naval shipbuilding industry has a GDP multiplier of 1.82 and an employment multiplier of 6.4—figures that highlight its unmatched potential in shaping India’s future economy. Every rupee spent on shipbuilding recirculates Rs 1.82 across various allied sectors, including logistics, electronics, and advanced manufacturing, the Survey noted.

Towards a Fully Atmanirbhar Force by 2047

The commissioning of INS Arnala is not just another addition to the Indian Navy—it is a powerful symbol of the country’s vision to become a fully self-reliant force by 2047. The ship embodies the synthesis of indigenous design, engineering, technology, and industry, demonstrating that India can now meet its maritime security needs without relying on external dependencies.

As regional waters grow more contested and the strategic stakes in the Indian Ocean Region rise, ships like Arnala will form the frontline of India’s underwater surveillance and anti-submarine capabilities. But perhaps even more importantly, they stand as floating proof of what India can build—by itself, for itself, and the world, as enthusiastically expressed by a veteran in shipbuilding.

Ravi Shankar

 

 

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