The Indian government is set to grant the shipping industry infrastructure status, with an official notification expected in two weeks. This change will allow shipping companies to access long-term, affordable financing for vessel expansion and order fulfillment with Indian shipyards. Currently, India ranks 18th in ship ownership and 22nd in shipbuilding, facing challenges due to higher financing costs and shorter repayment periods compared to global peers.
The new classification diverges from traditional infrastructure criteria, focusing instead on ship size. Vessels measuring 24 meters or more will qualify, and repayment plans will align with the typical 12- to 15-year lifespan of ships, alleviating financial pressures on owners.
Anil Devli, CEO of the Indian National Shipowners’ Association (Insa), believes this initiative will enable Indian shipowners to grow both their coastal and international fleets, ultimately boosting domestic shipbuilding.
This move complements existing government strategies, including the maritime development fund of Rs. 25,000 crore and incentives for green ship construction, aligning with India’s goal to be a top-five global player in shipbuilding and shipping by 2047. Granting infrastructure status is a strategic step to strengthen the maritime ecosystem, enhance competitiveness, and elevate the industry’s profile.
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