Recognizing the strategic and economic importance of the maritime industry, the Union Cabinet led by Prime Minister Shri Narendra Modi has approved a landmark package worth ₹69,725 crore to transform India’s shipbuilding and maritime ecosystem.
This initiative introduces a four-pillar approach focusing on financing, capacity expansion, technical advancement, and policy reforms. The aim is to position India as a global hub for shipbuilding while advancing the vision of Aatmanirbhar Bharat.
Boosting Shipbuilding Capacity and Financing
One of the key highlights of this package is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 2036, with an allocation of ₹24,736 crore. This scheme will incentivize domestic shipbuilding and includes a dedicated ₹4,001 crore Shipbreaking Credit Note to support recycling and sustainability efforts.
In addition, the creation of the ₹25,000 crore Maritime Development Fund (MDF) will provide long-term financing options for maritime projects. It comprises a ₹20,000 crore Maritime Investment Fund with government participation and a ₹5,000 crore Interest Incentivization Fund to reduce borrowing costs, thereby improving the bankability of shipbuilding and infrastructure projects.
Expanding Infrastructure and Building Skilled Capabilities
The Shipbuilding Development Scheme (SbDS), with an outlay of ₹19,989 crore, is another critical component. It aims to expand India’s domestic shipbuilding capacity to 4.5 million Gross Tonnage annually. The scheme will also encourage the establishment of mega shipbuilding clusters, infrastructure modernization, and the India Ship Technology Centre under the Indian Maritime University. Importantly, it emphasizes risk coverage and insurance support to encourage investment in large-scale projects.
Alongside infrastructure, the package prioritizes skilling and technical development to create a strong workforce. This focus on human capital is expected to generate nearly 30 lakh jobs, providing a major boost to employment opportunities across coastal and allied sectors.
The ₹69,725 crore maritime revitalization package is more than an economic stimulus it is a strategic roadmap to secure India’s future in global shipping. By unlocking 4.5 million Gross Tonnage in capacity and attracting ₹4.5 lakh crore in investments, the initiative will strengthen supply chain resilience, bolster national security, and enhance India’s self-reliance.
With maritime trade already handling over 95% of India’s goods by volume, this comprehensive approach ensures that the sector remains the backbone of India’s economy while driving the nation closer to its Aatmanirbhar Bharat vision.
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Source: PIB
