India Considers Infrastructure Status for Shipping Industry to Boost Global Rank by 2047

The Indian government is considering granting infrastructure status to the shipping industry, aiming to elevate the nation among the top five globally in shipbuilding and ownership by 2047. Currently ranked 18th, this change would facilitate easier access to long-term, low-interest financing for shipping companies, enabling them to purchase ships from Indian yards and augment domestic ownership.

The Ministry of Ports, Shipping and Waterways (MoPSW) has proposed that the Department of Economic Affairs include this status in the harmonized list of infrastructure, potentially announced in the upcoming budget. The infrastructure status would complement existing benefits for the shipbuilding sector, allowing firms better terms for project financing and tax advantages.

Industry experts, including Anil Devli, CEO of the Indian National Shipowners’ Association (INSA), argue that this designation is crucial, as it would level the playing field against foreign competitors who currently enjoy access to cheaper funds. In addition, the MoPSW is set to extend the Shipbuilding Financial Assistance Policy for another decade, supporting domestic shipyards and enhancing India’s maritime capabilities.

Ultimately, these initiatives aim to grow India’s share of global shipbuilding from less than 1% and increase its fleet to 100 million gross tonnage by 2047, fostering a robust maritime industry.

Source