India aims to secure a spot among the top ten shipbuilding nations by 2030, increasing its current contribution of less than 1% to the global market. T K Ramachandran, secretary of the Ministry of Ports, Shipping & Waterways, emphasized the need for a compounded annual growth rate (CAGR) of 17-18% to transport 20% of its freight. This ambition comes at a time of heightened oil prices and potential supply disruptions from the Middle East, which accounts for 40% of India’s oil imports.
To reduce reliance on foreign-flagged vessels, the government is promoting shipbuilding and ownership through financial and legislative measures. China, South Korea, and Japan dominate global shipbuilding, with the latter two accounting for 85% of the fleet. Despite its current minimal output, India’s position is gradually improving, thanks in part to the 2017 New Shipbuilding Financial Assistance (SFA) policy, which supports domestic shipyards.
In the January 2025 budget, the government allocated ₹25,000 crore under the Maritime Development Fund to enhance ship ownership and boost shipbuilding. Additionally, it plans to expand existing capacities and establish new shipyards. The Sagarmala Development Company is also set to facilitate funding for maritime projects, targeting key industry players like Shipping Corporation of India and Cochin Shipyard.
