A New Wave: India's ₹70,000 Crore Boost to Shipbuilding

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹69,725 crore package aimed at transforming India’s shipbuilding and maritime ecosystem over the next 10 years.

The initiative follows a four-pillar strategy focused on:

Strengthening domestic shipbuilding capacity, Enhancing long-term financing mechanisms, Promoting greenfield and brownfield shipyard development

Advancing technical skills, and enacting supportive legal, taxation, and policy reforms

A key highlight is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 2036, with an allocation of ₹24,736 crore. To further encourage domestic shipbuilding, a Shipbreaking Credit Note scheme worth ₹4,001 crore has also been introduced.

The package includes the creation of a National Shipbuilding Mission to oversee sectoral growth and policy implementation. To address financing challenges, the government has approved the establishment of a ₹25,000 crore Maritime Development Fund (MDF).

Union Minister Ashwini Vaishnaw emphasized the initiative’s multiplier effect across related sectors, including engine manufacturing, steel, electronics, and material procurement, calling it a pivotal move to position India as a global player in the maritime industry.

News by Rahul Yelligetti.