The Indian government is set to launch a significant initiative with a ₹70,000 crore investment aimed at bolstering the country’s shipping, shipbuilding, and maritime infrastructure. This plan, which is pending review by the Union Cabinet, is composed of three key schemes: a ₹20,000 crore Shipbuilding Fund, a ₹25,000 crore Maritime Development Fund (MDF), and another ₹25,000 crore in financial assistance for shipbuilding. These funds are designed to provide interest subsidies, long-term financing, and incentives to strengthen the domestic maritime sector, including ship-breaking and port-linked infrastructure. The MDF will be funded with 49% government equity, with the rest coming from port authorities, public sector undertakings, financial institutions, and private investors.
In line with this strategic push, major Indian shipbuilders such as Shipping Corporation of India (SCI), Garden Reach Shipbuilders & Engineers (GRSE), and Mazagon Dock Shipbuilders have already seen a surge in their stock prices. The government’s ambition is to establish ten world-class shipyards by 2030 through public-private partnerships and international collaborations. An example of this is the recent partnership between Cochin Shipyard Limited (CSL) and HD Korea Shipbuilding & Offshore Engineering. CSL is also exploring a new ₹15,000 crore shipyard project in Tamil Nadu, which is expected to create 10,000 jobs.
These financial and strategic measures are part of a broader, long-term vision to make India a globally competitive player in the maritime industry. The Minister of State for Ports and Shipping, Shantanu Thakur, has stated the goal of capturing a 5% share of the global shipbuilding market by 2030, which will be achieved through investments in automation, digital twin technology, and green shipbuilding solutions. The government has also granted infrastructure status to large ships and is reportedly planning an additional ₹4,000 crore incentive for the ship-breaking industry, all of which will help fuel trade growth and create employment opportunities within the sector.