India’s Union Budget for 2026-27 continues to label major state-owned ports as “trusts,” overlooking reforms from the Major Port Authorities Act of 2021. This act aimed to grant autonomy to ports, replacing the trust model. Despite a 48% funding increase, inconsistencies in terminology and allocations raise concerns about strategic port management.
The Indian government’s Sagarmala Programme, aimed at transforming the coastline into an economic hub, faces major setbacks with a 29% funding cut in the 2026-27 Union Budget, dropping from Rs 866 crore to Rs 616.88 crore. This decline threatens project timelines and coastal infrastructure development amid shifting funding priorities.
The Union Budget’s revamped Ship Building Financial Assistance Policy and the ₹25,000 crore Maritime Development Fund have passed the Expenditure Finance Committee review, awaiting Cabinet approval. Finance Minister Nirmala Sitharaman announced the fund to enhance competitiveness in the maritime industry, including significant government contributions and updated shipbuilding assistance schemes.
Indian government is set to unveil a maritime development fund to support shipbuilding firms in the upcoming Budget, aiming to boost the industry’s self-reliance. The proposed fund, estimated at Rs 15,000-20,000 crore over seven years, will provide affordable loans to shipbuilders. Additionally, a green ship scheme promoting hydrogen-based vessels to reduce pollution is also expected to be announced.
