In a significant move to enhance India’s maritime economy, the Union Cabinet has approved a reform package of Rs 69,725 crore aimed at modernizing the shipbuilding industry and maritime infrastructure. Union Minister Ashwini Vaishnaw stated the initiative seeks to position India as a global hub for shipbuilding and maritime services, generating substantial employment and investment opportunities.
The reform strategy is based on four pillars: improving domestic capacity and infrastructure, establishing long-term financing, supporting both new and existing shipyards, and enhancing skills through technical training. A key element is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 31, 2036, with an allocation of Rs 24,736 crore to incentivize local shipbuilders. This includes the introduction of a Shipbreaking Credit Note to promote sustainable ship recycling.
Additionally, the government plans to create a Maritime Development Fund (MDF) with a corpus of Rs 25,000 crore to facilitate affordable financing in the sector and has initiated the Shipbuilding Development Scheme (SbDS) with a budget of Rs 19,989 crore, targeting a shipbuilding capacity of 4.5 million gross tonnage annually. The ultimate goal is to attract around Rs 4.5 lakh crore in investments and create nearly 30 lakh jobs, solidifying India’s position in the global maritime landscape.
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