Background: This study examines the systemic barriers constraining the development of India’s shipbuilding industry and identifies leverage points for effective policy intervention. Methods: A mixed-methods design was adopted, combining the Delphi technique with fuzzy DEMATEL to capture expert consensus and causal interdependencies among barriers. A panel of 20 experts, drawn from academia, the government, shipbuilding and ship repair, ports, logistics, and maritime consultancy, participated in two iterative Delphi rounds. An initial list of 21 barriers was refined to 10 based on convergence thresholds. These barriers were then analysed using a seven-step fuzzy DEMATEL procedure to distinguish causal drivers from dependent factors. Results: High raw material costs emerged as the most dominant causal barrier, with the highest net influence (R−C = 0.540), followed by high working capital requirements (R−C = 0.103) and complex regulatory frameworks (R−C = 0.275). Shortages of skilled labour, inefficiencies in ship design, and delays in clearances were largely effect-type barriers shaped by upstream structural conditions. Sensitivity analysis confirmed the stability of barrier rankings under alternative expert weighting scenarios. Conclusions: Policy efforts should prioritise reducing input cost disadvantages, strengthening long-term policy support, and rationalising regulatory processes, rather than focusing solely on downstream operational symptoms. The study is limited to expert judgement in the Indian shipbuilding sector. Future research could extend this framework to comparative country settings or integrate causal analysis with econometric evidence to further strengthen policy design. Contribution: Unlike prior thematic studies, this research provides an integrated causal mapping of structural, financial, and institutional barriers specific to Indian shipbuilding, enabling policy sequencing rather than simple ranking.