The government is considering granting infrastructure status to the shipping industry in order to propel India into the ranks of the top five countries in shipbuilding and ship ownership by 2047. This status would allow shipping companies to access funds from commercial banks on more favorable terms, including long-term repayment options and lower interest rates. This, in turn, would facilitate the purchase of ships from Indian shipyards and increase Indian ownership in the industry.
The Ministry of Ports, Shipping and Waterways has urged the Department of Economic Affairs to include ships in the Harmonized Infrastructure List, potentially to be announced in the budget on February 1. While the shipbuilding industry already benefits from infrastructure status, the shipping industry currently lacks this designation. This puts shippers at a disadvantage as they also require long-term financing for capital-intensive ship purchase plans, which would support the domestic shipbuilding industry in securing larger orders.
The move towards granting shipping infrastructure status is expected to enhance operational efficiencies for Indian companies, enabling them to expand their vessel acquisitions and operations. The initiative aligns with the industry’s long-standing demand for access to affordable, long-term funding to drive growth in the maritime sector. Alongside this, the government is planning to extend the Shipbuilding Financial Assistance Policy and introduce a mega shipbuilding policy with various incentives to boost India’s position in the global shipbuilding market.
In line with the Amritkaal Maritime Vision 2047, India aims to increase its ship ownership and shipbuilding capabilities significantly over the next few decades. By enhancing domestic shipbuilding and ship ownership, the government aspires for India to become one of the top five countries in the world in these aspects by 2047. These strategic measures are geared towards propelling the Indian maritime sector towards greater growth and competitiveness globally.
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