New Delhi: Marking a decisive step toward strengthening India’s strategic and industrial capabilities, the Union Cabinet on Wednesday approved a ₹69,725 crore package to overhaul the country’s shipbuilding and maritime ecosystem. The package aims to position India as a global shipbuilding hub, while unlocking large-scale employment and investment opportunities.
This bold initiative comes at a time when maritime infrastructure is being increasingly viewed as critical to national security, economic growth, and global supply chain resilience.
A Four-Pillar Blueprint for Maritime Growth
The package is designed around a four-pronged approach, each targeting a key area of India’s maritime ambitions:
- Strengthening Domestic Capacity – By scaling up shipbuilding infrastructure and supporting shipyards with modern facilities and skilled manpower.
- Long-Term Financing Solutions – Introducing new financial mechanisms to make capital more accessible and affordable for maritime projects.
- Technology and Skilling Focus – Supporting innovation, design, and training to build a technically capable workforce and ecosystem.
- Policy and Regulatory Reform – Simplifying legal, tax, and procedural frameworks to ease business and attract private investment.
Key Schemes and Financial Allocations
Shipbuilding Financial Assistance Scheme (SBFAS)
- Extended till March 2036, with a ₹24,736 crore allocation.
- Aims to make Indian-built ships more globally competitive.
- Includes a Shipbreaking Credit Note worth ₹4,001 crore to support recycling and sustainability.
Maritime Development Fund (MDF)
Total corpus: ₹25,000 crore
- ₹20,000 crore: Maritime Investment Fund (with 49% govt share)
- ₹5,000 crore: Interest Incentivisation Fund to reduce borrowing costs and boost project viability
Shipbuilding Development Scheme (SbDS)
- Budget of ₹19,989 crore
- Targets 4.5 million Gross Tonnage (GT) in annual domestic shipbuilding capacity
Focus areas:
- Mega shipbuilding clusters
- Infrastructure expansion
- India Ship Technology Centre at Indian Maritime University
- Insurance/risk support for shipbuilders
National Shipbuilding Mission
- A new apex body to coordinate implementation, monitor progress, and align efforts across ministries and states.
Wider Economic and Strategic Impact
The government expects the package to:
- Generate up to 30 lakh jobs
- Attract ₹4.5 lakh crore in maritime investments
- Enable self-reliance in shipbuilding for cargo, energy transport, and strategic needs
- Support critical trade and energy supply chains, reducing reliance on foreign-built vessels
Moreover, the move is seen as a key component of India’s Aatmanirbhar Bharat (self-reliant India) vision — enhancing national manufacturing capacity in core strategic sectors.
Incentives for Indian-Made Ships
To incentivise domestic production further, the Cabinet has granted infrastructure status to large, Indian-built commercial vessels:
- Ships of 10,000 GT and above (Indian-flagged and owned) qualify
- Ships with 1,500 GT and above, if built in India, also qualify
This classification will allow easier access to credit, longer repayment windows, and tax benefits, further lowering entry barriers for Indian shipowners.
Reviving a Maritime Legacy
India has a deep maritime heritage — for centuries, Indian ports and shipbuilders connected the subcontinent to global trade routes. Today, the maritime sector continues to be vital, handling 95% of India’s trade by volume and 70% by value.
However, shipbuilding — often called the “mother of heavy engineering” — has remained underutilized. With this new package, the government aims to revive domestic shipyards, catalyse allied industries (like steel, electronics, marine design), and create a self-sustaining maritime ecosystem.
A Long-Term Strategic Vision
The ₹69,725 crore package is more than a fiscal stimulus — it’s a long-term vision to create jobs, build resilience, reduce import dependence, and make India a global force in shipbuilding and maritime trade.
By combining infrastructure expansion, financial incentives, and institutional support, the government hopes to anchor India’s maritime future and support its emergence as a strategic and economic powerhouse in the Indo-Pacific region and beyond.
