The government is expected to grant infrastructure status to the shipping industry within the next two weeks. This move is aimed at helping shipping firms secure cheaper, longer-term bank financing, which will encourage the purchase of vessels from Indian shipyards and boost domestic vessel ownership. This initiative is considered crucial for India to achieve its goal of becoming one of the top five countries in shipbuilding and ownership by 2047. India currently ranks 18th in ship ownership and 22nd in shipbuilding.
The new infrastructure status will bridge the gap between Indian and foreign shipowners, who currently have access to long-tenure, low-cost funding. It will align repayment schedules with the 12-15 year economic life of vessels, support fleet expansion under the Indian flag, and reduce operating costs. The Department of Economic Affairs (DEA) and the Ministry of Ports, Shipping, and Waterways have held discussions and are inclined to use vessel size, with ships 24 meters and longer, as the benchmark for eligibility.