Government Unveils ₹69,725 Crore Initiative to Boost India's Shipbuilding Sector
Significant Investment in Shipbuilding
Representational Image
New Delhi, July 25: The Indian government has announced a substantial financial package of ₹69,725 crore aimed at enhancing the country's shipbuilding capabilities, maritime financing, and workforce training, as part of a broader strategy to revitalize the shipbuilding sector.
This initiative features a Shipbuilding Financial Assistance Scheme with a budget of ₹24,736 crore, designed to mitigate the cost disadvantages faced by Indian shipyards in comparison to their international counterparts, as stated by Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, during a session in Lok Sabha.
A crucial element of this package is the establishment of a Maritime Development Fund with a total corpus of ₹25,000 crore, which will provide long-term financial support to the shipbuilding and maritime industries. This fund includes a Maritime Investment Fund of ₹20,000 crore and an Interest Incentivisation Fund of ₹5,000 crore.
Additionally, the government has introduced a Shipbuilding Development Scheme (SbDS) with an allocation of ₹19,989 crore, aimed at increasing production capacity to 4.5 million gross tonnage annually through the development of new clusters and the expansion of existing facilities.
According to a statement from the Ministry of Ports, Shipping and Waterways, these initiatives are aligned with the objectives outlined in the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047, positioning India as a formidable player in the global shipbuilding arena.
To further enhance the shipbuilding industry, various policy reforms have been implemented, including the classification of large vessels as infrastructure and the aggregation of demand.
On September 19, 2025, infrastructure status was granted to Indian-flagged commercial vessels weighing 10,000 Gross Tonnage (GT) and above, as well as to vessels of 1,500 GT and above that are constructed in India.
As part of the demand aggregation strategy, a fleet acquisition plan has been developed, which outlines the procurement of over 400 vessels, providing Indian shipyards with long-term order visibility.
The government has also given preliminary approval for the establishment of three new shipbuilding clusters in Andhra Pradesh, Gujarat, and Tamil Nadu under the Shipbuilding Development Scheme (SbDS).