New Delhi: The Government of India has approved a ₹69,725 crore shipbuilding package to strengthen India’s shipbuilding industry, improve access to long-term finance and develop skilled workers. The plan is part of a four-pillar strategy announced after measures in the Union Budget 2025–26 and aims to make India a stronger global shipbuilding hub.
The Ministry of Ports, Shipping and Waterways said the package will support new shipbuilding facilities, expansion of existing shipyards, financing and skill development.
Details of India Shipbuilding Package
The package has three major financial components. The Shipbuilding Financial Assistance Scheme (SBFAS) has an outlay of ₹24,736 crore. It is designed to reduce the cost disadvantage faced by Indian shipyards when competing with major global shipbuilding countries.
Read also: Major Ports Cargo Handling FY 2025–26: India Surpasses 904 MT Target with Record 915 MT Throughout
Another ₹25,000 crore has been allocated to the Maritime Development Fund (MDF) to provide long-term financial support to the shipbuilding and wider maritime sectors.
The MDF includes a ₹20,000 crore Maritime Investment Fund (MIF) and a ₹5,000 crore Interest Incentivisation Fund (IIF). Official guidelines say the latter is intended to lower the effective cost of debt and improve the financial viability of maritime projects.
The third major component is the Shipbuilding Development Scheme (SbDS), which has an outlay of ₹19,989 crore.
India Targets 4.5 Million Gross Tonnage Shipbuilding Capacity
Under the Shipbuilding Development Scheme, the government aims to increase India’s annual shipbuilding output capacity to 4.5 million Gross Tonnage (GT).
The plan includes developing new greenfield shipbuilding clusters and expanding the capacity of existing shipyards.
The government says these measures are aligned with Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, which seek to strengthen India’s position in the global maritime industry.
India Shipbuilding Package: Three New Shipbuilding Clusters Get In-Principle Approval
The government has given in-principle approval for three greenfield shipbuilding clusters in Andhra Pradesh, Gujarat and Tamil Nadu.
Financial support under the SbDS will help develop common maritime and land-based infrastructure required for these new clusters.
The government has also given in-principle approval to proposals from four shipyards for brownfield capacity expansion. These projects involve shipbuilding and ship-repair facilities with a combined estimated cost of more than ₹2,500 crore.
India Plans Acquisition of More Than 400 Vessels
The government has also prepared a fleet acquisition plan covering more than 400 vessels. According to the Ministry, this is expected to provide Indian shipyards with better long-term visibility of future orders.
Policy changes have also given infrastructure status to certain commercial vessels. Indian-flagged commercial vessels of 10,000 GT or above received infrastructure status from September 19, 2025. For vessels built in India, the threshold is 1,500 GT or above.
Government Steps Up Shipbuilding Skill Development
Skill development is another important part of the shipbuilding push. According to the government, 11 shipyards have signed MoUs with 34 Industrial Training Institutes (ITIs) across eight coastal states for on-the-job training. A 150-hour OJT model has been introduced, with 727 trainees already trained at these yards.
A Training of Trainers programme has also been implemented at two ITIs in West Bengal through the Centre of Excellence in Maritime and Shipbuilding. A preliminary skill-gap study has covered nine shipyards.
Overall, the government says 92,697 candidates have been trained, skilled or upskilled during the last three years. India has also signed a Plan of Implementation with the Korea International Cooperation Agency (KOICA) for a skill-development project in the shipbuilding sector.
India Shipbuilding Output Rises 41%
India’s shipbuilding output recorded strong growth in 2025. Citing the latest UN Trade and Development (UNCTAD) report, the government said India’s shipbuilding output increased 41%, from 40,923 GT in 2024 to 57,637 GT in 2025.
The government said the new shipbuilding measures have also helped increase confidence among Indian shipyards, with several large commercial and export orders being placed. In the past two years, in-principle approvals for financial assistance have been given for shipbuilding contracts worth a total of ₹15,234 crore.
India Ship Technology Centre Established
The government has also established the India Ship Technology Centre (ISTC) as a Section 8 company. The centre will work to improve India’s capabilities in ship design, research and development, skill development, software and related technologies.
These efforts are expected to help Indian shipyards improve technology and compete more effectively in the international market.
Why Is the India Shipbuilding Package
Shipbuilding has links with several industries, including steel, engineering, electronics, logistics, ports and maritime services. The government said the shipbuilding industry has an employment multiplier of 6.4, meaning expansion of the sector can support significant direct and indirect employment.
The ₹69,725 crore package therefore focuses not only on building more ships, but also on financing, infrastructure, technology and skilled manpower. The information was provided by Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal in a written reply to the Lok Sabha on July 24, 2026.
