India Unveils ₹69,275 Cr Plan to Boost Shipbuilding Sector

In an effort to enhance the maritime industry, the Centre has announced a package of ₹69,275 crore to promote and expedite India’s shipbuilding sector, which is an important step towards achieving Maritime India Vision 2030 & Viksit Bharat 2047.

The initiative is expected to enable large-scale employment, attract foreign direct investment in shipbuilding and enhance the strategic and industrial capability of India. The Shipbuilding Financial Assistance Scheme, at the heart of the initiative, has an outlay of ₹24,736 crore.

It will result in providing financial assistance, ship-breaking credit notes, and domestic manufacturing under the National Shipbuilding Mission. Similarly, the Maritime Development Fund with a value of ₹25,000 crore will incentivize and support investments while also driving down interest costs and the Shipbuilding Development Scheme with ₹19,989 crore would assist with capital requirements, risk sharing, and building capacity to create emerging shipbuilding clusters.

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In addition, to encourage domestic production, the government has announced infrastructure status for large vessels, allowing for easier debt financing and investments in the sector. Experts in the industry describe this as a major improvement for India's maritime ecosystem and anticipate that India will become one of the top five shipbuilding countries in the world by 2047.

Major public and private actors are already at the forefront. Cochin Shipyard and Mazagon Dock have signed MoUs with Tamil Nadu agencies for large shipbuilding complexes, including a ₹15,000 crore facility that will be able to deliver one million GT a year. Cochin Shipyard will partner with HD Korea Shipbuilding to build large commercial ships in stages, backed by a ₹3,700 crore fabrication unit in Kochi, generating thousands of jobs and strengthening MSME-connected supply chains.