India’s government just rolled out a massive boost for its shipbuilding and maritime industry. On Wednesday, Prime Minister Narendra Modi’s Union Cabinet greenlit a Rs 69,725 crore package to supercharge the sector and help India compete on the global stage.
This big investment aims to unlock 4.5 million Gross Tonnage of shipbuilding capacity. It could create nearly 30 lakh jobs and draw in around Rs 4.5 lakh crore in fresh investments for India’s maritime ecosystem. With the country’s maritime sector already handling 95% of trade by volume and 70% by value, this move promises to strengthen the economy’s backbone.
At the heart of the package is the Shipbuilding Financial Assistance Scheme (SBFAS), extended through March 31, 2036, backed by a Rs 24,736 crore fund. It includes a Rs 4,001 crore Shipbreaking Credit Note to encourage more domestic activity. A new National Shipbuilding Mission will guide all these efforts to make sure they deliver results.
The plan rests on four key pillars: building up local shipbuilding strength, securing long-term financing, pushing for new and upgraded shipyards (greenfield and brownfield projects), and boosting skills, technology, and reforms in laws, taxes, and policies. These steps should create a solid foundation for India’s maritime infrastructure.
Adding to that, the Cabinet approved the Maritime Development Fund (MDF) with Rs 25,000 crore for long-term loans to the industry. It breaks down into a Rs 20,000 crore Maritime Investment Fund—where the government chips in 49%—and a Rs 5,000 crore Interest Incentivisation Fund to cut borrowing costs and make projects more attractive to banks.
Then there’s the Shipbuilding Development Scheme (SbDS), with Rs 19,989 crore allocated. This will help ramp up annual shipbuilding to 4.5 million Gross Tonnage, support huge shipbuilding clusters, expand infrastructure, and launch the India Ship Technology Centre at the Indian Maritime University. It also offers risk protection, like insurance, for major projects.
Beyond jobs and growth, the package ties into bigger goals. It bolsters national security, energy supplies, and food chains by making key maritime routes more reliable. Officials say it advances India’s self-reliance push under Aatmanirbhar Bharat, enhancing geopolitical strength and turning the country into a top player in global shipping and shipbuilding.
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