Local shipyards urge government to raise BCD for ship imports

The Shipyards Association of India (SAI) has strongly advocated for an increase in the Basic Customs Duty (BCD) on ships in order to promote the shipbuilding industry in India. President Sahay Raj welcomed the move, stating that it reflects the government’s commitment to providing incentives to boost all shipyards. As India aims to become one of the top five shipbuilding nations within a decade, Raj emphasized the importance of announcing the BCD hike on ships at the earliest.

The issue was discussed at the Global Maritime India Summit in October, with participation from officials from the Ministry of Ports, Shipping and Waterways, think tanks, foreign experts, and SAI member shipyards. Arjun Chowgule, vice president of SAI, believes that the proposed increase in BCD will not only boost shipbuilding in India but also encourage Indian shipyards to compete in global markets and win more orders, ultimately contributing to the sustainable rebalancing of the Indian economy.

The Indian shipbuilding industry currently holds less than 1 percent of the global share, despite being identified as a key sector under the Make in India initiative. Indian shipyards face tough competition in the domestic market due to lack of protection against foreign shipyards, and the cost of ships manufactured in India is at least 35 percent higher than those built at foreign shipyards. The proposed increase in BCD is seen as a game-changer in achieving the ambitious shipbuilding targets envisioned in the Maritime Amrit Kaal Vision 2047 by Prime Minister Narendra Modi.

Source .