The Union Budget for 2026 has earmarked ₹5,164.80 crore for the Ministry of Ports, Shipping, and Waterways, marking a significant increase from the previous year’s allocation of ₹3,470.58 crore. Included in this budget is ₹1,000 crore designated for the Maritime Development Fund (MDF) for the fiscal year 2027. Specific allocations include ₹515 crore for the Shipbuilding Financial Assistance Scheme (SBFAS) and National Shipbuilding Mission, alongside ₹250 crore for capacity development and credit risk coverage under the India-Shipbuilding Development Scheme (SbDS).
On September 24, 2025, the Union Cabinet approved a comprehensive ₹69,725-crore package aimed at enhancing India’s shipbuilding and maritime capabilities, with the goal of reducing reliance on foreign entities. This initiative follows the previous year’s proposal to establish a ₹25,000 crore Maritime Development Fund. The SBFAS will be extended until March 31, 2036, with a total corpus of ₹24,736 crore, facilitating long-term financing for the sector.
Details regarding the MDF’s expenditure remain undisclosed, but an update from the Ministry of Finance on January 24, 2026, confirmed the formation of a governing council to oversee the fund’s performance and policy guidance. The government is also in the process of selecting a fund manager and implementing agencies, with draft guidelines circulated for stakeholder feedback.
