Indian Navy to Induct First Indigenous Shallow Water Craft: A Leap in Maritime Self-Reliance

In a significant stride toward bolstering coastal defense and operational autonomy, the Indian Navy is poised to induct its first indigenously built shallow water craft this month. The development marks a milestone in India’s Aatmanirbhar Bharat (self-reliant India) initiative in defense manufacturing, enhancing the country’s capability in littoral warfare and anti-submarine operations.

A Watershed Moment for Indian Naval Power

The vessel, part of the Anti-Submarine Warfare Shallow Water Craft (ASW-SWC) program, has been constructed by Garden Reach Shipbuilders & Engineers Ltd. (GRSE), a Kolkata-based defense PSU. The ASW-SWC ships are designed specifically for detecting and neutralizing underwater threats in coastal areas and have been tailored for operation in shallow waters, where traditional larger ships are less effective.

With stealth features, advanced sonar systems, and a low acoustic signature, the craft is expected to significantly improve India’s coastal surveillance and underwater warfare capabilities.

Vice Admiral Sanjay Mahindru, Deputy Chief of Naval Staff, noted,

“The induction of this vessel is a proud moment for Indian defense. It underscores our resolve to develop cutting-edge technology domestically and reduce reliance on foreign platforms.”

Strategic Capabilities and Specifications

The ASW-SWC class vessel, named INS Arnala, is the first of 16 ships ordered under the Navy’s shallow water craft program. These ships are compact yet potent, equipped with:

• Integrated sonar suite for submarine detection

• Lightweight torpedoes and anti-submarine rockets

• Hull-mounted and towed array sonars

• Low radar cross-section design

• Speed capability of over 25 knots

• Displacement of approximately 700 tons

This class of ships is expected to replace the aging Abhay-class ASW corvettes, bringing in greater efficiency and endurance for near-shore missions.

'Make in India' in Action

The project aligns strongly with the central government’s ‘Make in India’ and Defence Acquisition Procedure (DAP) 2020, aimed at increasing indigenous content in defense production. Over 80% of the components used in the ASW-SWC vessels are sourced domestically, involving more than 50 MSMEs and private vendors.

Commodore Rakesh Anand (Retd), Defense Analyst, emphasized,

“This induction is not just about acquiring a warship; it's a manifestation of India’s growing defense industrial base. Indigenous production helps improve logistics, reduce costs, and ensure strategic autonomy.”

GRSE is building 8 ships under the program, while Cochin Shipyard Limited (CSL) is constructing the remaining 8.

Market Context: Boost to Indian Defense Manufacturing

The induction is expected to give a boost to domestic defense PSUs and private sector vendors engaged in shipbuilding, sonar technologies, and propulsion systems. GRSE, in particular, is likely to benefit from increased visibility and future contracts, including export opportunities.

Siddharth Rajan, a defense industry consultant, commented,

“With nations in Southeast Asia and Africa seeking affordable maritime solutions, the ASW-SWC class could become a potential export product for India.”

GRSE’s stock has shown resilience in the market, with investor sentiment improving following a steady pipeline of naval contracts.

Geopolitical and Strategic Implications

India’s increased focus on maritime domain awareness (MDA) comes amid rising Chinese activity in the Indian Ocean Region (IOR). Shallow water combatants like the Arnala-class will play a vital role in safeguarding India’s 11,000-km coastline and 1,200 islands, many of which are strategically positioned near busy maritime trade routes.

The ASW-SWC fleet is expected to be deployed in key naval commands, including the Eastern and Western seaboards, and will work in tandem with P-8I Poseidon aircraft, drones, and submarines to establish a layered anti-submarine defense.

Investor Outlook: Defense Sector Gathers Steam

The Indian defense sector is expected to witness robust growth, driven by increasing budget allocations, strategic partnerships, and policy support. According to reports, India aims to increase the indigenous defense manufacturing market to ₹1.75 lakh crore by 2025.

Companies like GRSE, Bharat Electronics Ltd. (BEL), and Hindustan Aeronautics Ltd. (HAL) are well-positioned to benefit from this momentum. With a strong order book and export interest growing, GRSE could see improved earnings in the next few quarters.

For investors, this translates into an optimistic long-term outlook for the defense manufacturing space. Analysts advise a watchful eye on upcoming naval procurement and modernization plans, as these will further shape the revenue trajectory for key players.

The commissioning of the first indigenous shallow water craft into the Indian Navy marks a historic moment in India’s maritime journey. It’s a testament to technological progress, policy alignment, and strategic foresight. As India sharpens its focus on blue-water capabilities and coastal defense, platforms like the ASW-SWC class vessels will form a crucial part of the naval toolkit—ensuring that the seas around India remain safe, sovereign, and secure.