As India sets its sights on becoming a regional leader in the Indo-Pacific, the scrutiny surrounding its maritime strategy intensifies, particularly with the proposed construction of a third aircraft carrier. This ambitious project, with an estimated cost of Rs 40,000–50,000 crore, has sparked a heated debate. Critics decry it as a costly indulgence, while supporters champion it as a vital economic stimulus, essential for bolstering industrial capacity and securing critical trade routes.
The shipbuilding industry in India has often been viewed as an underutilized asset, but the successful construction of the INS Vikrant, the nation’s first indigenously built aircraft carrier, showcased its transformative potential. This project not only created jobs but also catalyzed regional development, engaging over 500 micro, small, and medium enterprises (MSMEs) and generating 14,000 direct and indirect jobs. The proposed Indigenous Aircraft Carrier-2 (IAC-2) promises to amplify these benefits significantly. With an economic multiplier effect where every Rs 1 invested generates an additional Rs 1.82 in economic activity, the implications stretch far beyond shipbuilding. Ancillary industries such as steel, electronics, and engineering stand to gain immensely, aligning perfectly with India’s broader “Make in India” objectives.
Cochin Shipyard Limited (CSL), the heart of India’s aircraft carrier construction, is poised for substantial growth. Building the IAC-2 ensures that the expertise developed during the Vikrant project doesn’t fade away, unlike the costly erosion of skills seen during the submarine production hiatus at Mazagaon Dock in the 1990s. The ripple effect of large-scale naval projects extends to infrastructure upgrades in regions surrounding major shipyards and naval bases. Just as the UK saw significant modernization of ports during the construction of the Queen Elizabeth-class carriers, India can expect similar enhancements around cities like Kochi and Visakhapatnam. These upgrades will not only support defence activities but will also strengthen the commercial maritime infrastructure vital for the Sagarmala Initiative, which aims for port-led economic development.
The third carrier’s construction is set to generate significant employment, with estimates suggesting over 15,000 jobs could be created, spanning shipyard workers to engineers and project managers. The need for specialized training will likely spur new educational programs and partnerships with institutions like the Indian Maritime University. Furthermore, the advanced technologies employed in carrier construction, such as Electromagnetic Aircraft Launch Systems (EMALS) and unmanned aerial systems (UAS), could enhance India’s technological ecosystem, fostering innovation and benefiting industries like aerospace and robotics.
On the global stage, joining the elite club of nations capable of building aircraft carriers positions India as a formidable player in the defence market. With only seven nations currently constructing carriers, India’s growing expertise could allow it to tap into a niche market, offering maintenance services or exporting smaller platforms to allied nations. This aligns with India’s goal of achieving $5 billion in annual defence exports by 2025, providing a steady revenue stream while enhancing its geopolitical influence.
Moreover, the economic rationale for a third carrier is inextricably linked to safeguarding maritime trade routes. With a staggering 95% of trade by volume and 70% by value conducted via sea, ensuring the safety of these shipping lanes is paramount. A robust carrier fleet enables India to project power and deter threats ranging from piracy to state-sponsored aggression. As China expands its naval presence in the Indian Ocean, exemplified by projects like the Fujian aircraft carrier, India must counterbalance this influence to protect its trade lifelines.
Critics often highlight the hefty price tag of the carrier and the competing priorities of modernizing the Army and Air Force. However, strategic public-private partnerships could alleviate financial burdens while enhancing efficiency. The long-term benefits—job creation, industrial growth, and fortified trade security—far outweigh the initial investment.
The discourse surrounding India’s third aircraft carrier transcends mere military capabilities; it embodies a significant economic opportunity. By driving industrial growth, generating jobs, and ensuring trade security, the IAC-2 could serve as both a catalyst for national development and a testament to India’s maritime aspirations. As India seeks to assert itself as a global power, investments like the third carrier are not just strategic military assets; they are crucial investments in the nation’s future.