India’s shipbuilding industry is experiencing a pivotal transformation, backed by the Union Government’s robust policy push and long-term vision. Under the leadership of Prime Minister Narendra Modi, the sector is being positioned as a critical driver for India’s economic growth, maritime self-reliance, and the broader goal of a Viksit Bharat by 2047. Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal, recently outlined key reforms and budgetary commitments that are set to elevate India’s global maritime standing.
Major Budgetary Boosts and Policy Reforms to Strengthen the Sector
As part of the Maritime India Vision 2030 and the strategic Amrit Kaal roadmap, the Union Budget 2025 has introduced several transformative reforms:
-
Revamped Shipbuilding Financial Assistance Policy to eliminate cost disadvantages faced by Indian yards, ensuring competitiveness in global tenders.
-
Inclusion of ship-breaking credit notes, supporting a circular economy model.
-
Infrastructure status granted to large ships above a specific size, allowing access to low-interest, long-term financing under the Infrastructure Harmonised Master List.
-
Development of integrated shipbuilding clusters with modern facilities, skill centers, and advanced technology.
-
Launch of a ₹25,000 crore Maritime Development Fund, with up to 49% government contribution, aimed at mobilizing long-term capital and private investments.
-
Tax exemptions on Basic Customs Duty (BCD) for raw materials and components used in shipbuilding and repair extended for 10 more years.
These measures are not just about economic growth but are strategic in nature, enhancing India’s maritime security and reducing dependence on foreign shipbuilders.
Strategic Initiatives for Local Empowerment and Global Competitiveness
To support domestic shipbuilders and create a strong industrial base, several operational and policy-level initiatives have been introduced:
-
The Right of First Refusal (ROFR) has been extended to Indian shipyards for public procurement tenders, promoting local manufacturing.
-
As per the Make in India procurement policy, all vessels under ₹200 crore must be sourced from Indian shipyards.
-
Standardised tug designs have been introduced for major ports, to be constructed exclusively in Indian yards, ensuring cost-effective and timely procurement.
-
Cochin Shipyard Limited’s ₹970 crore International Ship Repair Facility (ISRF) in Kochi has been inaugurated, reducing reliance on foreign repair docks and turning India into a regional repair hub.
-
Capacity building through programs like the Prime Minister’s Internship Scheme at Mazagon Dock Shipbuilders and CSL is equipping India’s youth with hands-on experience in marine engineering and shipbuilding.
These efforts collectively enhance domestic capability, generate employment, and promote innovation within the industry.
India’s shipbuilding sector is on course to become a cornerstone of the nation’s vision for economic prosperity and global maritime leadership. With strong government support, structural reforms, and strategic investments, the sector is poised to create jobs, boost exports, and strengthen India’s strategic maritime infrastructure. As Union Minister Sonowal aptly put it, “India is not just building ships; we are building a resilient future.” With these ongoing initiatives, India is steering confidently toward becoming a global maritime powerhouse by 2047.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: PIB
