India has set its sights on becoming a global maritime powerhouse, allocating approximately $6 billion to the shipping sector in the 2025-26 fiscal year. Finance Minister Nirmala Sitharaman presented budget documents to Parliament, revealing plans to upgrade the country’s maritime infrastructure. The government has proposed a $3 billion Maritime Development Fund (MDF), with contributions from the government, port authorities, and the private sector. The fund aims to finance ship acquisitions, increase the market share of Indian-flagged ships globally, and reduce dependence on foreign ships by 2030.
The budget also focuses on supporting domestic shipbuilding, with plans to establish shipbuilding clusters in five states with a capacity of up to 1.2 million gross tonnes per year. The government aims to make India a top-10 player in the global shipbuilding market by 2030. The budget includes capital for creating breakwaters and dredging at the designated clusters, as well as a 10-year rent holiday for land and additional funding for upgrades and automation at existing shipyards.
Additionally, the budget extends the Shipbuilding Financial Assistance Policy (SBFAP) with a $2 billion allocation to provide financial subsidies to Indian shipyards. The budget also supports the Shipbreaking Credit note scheme, which incentivizes ship scrapping by offering a credit note of 40 percent of the scrap value to be used towards purchasing a new vessel built at a domestic yard. These initiatives aim to boost India’s maritime sector and enhance its competitiveness in the global market.
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