Prime Minister Narendra Modi recently addressed India’s heavy reliance on foreign shipping firms, a practice that costs the country approximately ₹6 lakh crore annually. Speaking in Gujarat, Modi criticized past governments for neglecting India’s indigenous shipbuilding industry, which he says has led to a major drain on the national economy. He emphasized the urgent need for an “Atmanirbhar” (self-reliant) shipping sector, asserting that India has the capability to revive its maritime strength.
To counter this over-dependence, the government has launched a major policy push. A landmark decision has been made to grant infrastructure status to large ships, which is expected to make financing easier and more affordable for Indian shipowners. This new status applies to commercial vessels with a gross tonnage of 10,000 or more under Indian ownership and flag. For locally built ships, the status is granted to those with a gross tonnage of 1,500 or more, further incentivizing domestic construction.
In line with the “Maritime India Vision 2030,” the government has also announced the creation of a ₹25,000 crore Maritime Development Fund (MDF) in the Union Budget 2025-26. This fund is specifically designed to finance ship acquisitions and is projected to attract a total investment of ₹1.5 lakh crore by 2030. The ultimate goal is to increase the share of Indian-flagged ships in global cargo to 20% by 2047, a significant increase from the current figure of less than 10%.