The Indian shipbuilding industry is experiencing a significant transformation as the government, led by Prime Minister Narendra Modi, aims to establish a world-class maritime ecosystem. According to Sarbananda Sonowal, Minister of Ports, Shipping and Waterways, the Union Budget 2025 outlines reforms and investments aligned with the Maritime India Vision 2030, designed to enhance the capacity and competitiveness of Indian shipyards.
Sonowal emphasized the revamped “Shipbuilding Financial Assistance Policy,” which aims to level the playing field for Indian shipyards against international competitors. Additionally, the introduction of credit notes for shipbreaking supports a sustainable maritime economy. Large ships will now be classified under the Infrastructure Harmonised Master List to facilitate long-term, low-interest funding.
To further develop the sector, the government plans to create integrated shipbuilding clusters with modern infrastructure and skill development centers. A notable initiative is the proposed Rs 25,000 crore Maritime Development Fund, which aims to attract private investments for modernizing shipbuilding capabilities. Tax exemptions on raw materials for shipbuilding have also been extended for another decade to support the industry’s growth.
The Right of First Refusal for public sector tenders has been extended to benefit Indian shipbuilders, reinforcing self-reliance in maritime assets. Cochin Shipyard Limited has inaugurated a Rs 970 crore International Ship Repair Facility in Kochi, marking a significant advancement in ship repair capabilities.
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