The government unveils a ₹25,000 Cr Maritime Fund, tax reliefs, and reforms to make India a global shipbuilding hub.
In a powerful push toward Viksit Bharat 2047, the Indian government has launched sweeping reforms to transform the country into a global maritime powerhouse. Union Minister Sarbananda Sonowal, responding during the monsoon session of Parliament, declared that India’s shipbuilding sector is set for a generational leap under the leadership of Prime Minister Narendra Modi.
At the core of this transformation lies a ₹25,000 crore Maritime Development Fund, designed to attract long-term capital and private investment. With up to 49% government contribution, the fund will fast-track the modernisation of shipyards and repair infrastructure while encouraging port-led industrial growth.
In his remarks, Sonowal highlighted key budgetary measures supporting the Maritime India Vision 2030 and the broader strategic goals of Amrit Kaal. These include:
- Tax exemptions on basic customs duty for shipbuilding raw materials extended by 10 years
- Revamped Shipbuilding Financial Assistance Policy to level global competition
- Inclusion of large vessels in the Infrastructure Harmonised Master List, making them eligible for low-interest, long-term funding
- Development of integrated shipbuilding clusters with advanced infrastructure and skill development centres
- Right of First Refusal (ROFR) for Indian shipyards on public sector tenders
- Mandated procurement of vessels below ₹200 crore from Indian yards
In a landmark sustainability push, the government has also extended credit incentives for ship-breaking to promote circularity and green growth. Furthermore, five standardised tug designs have been introduced for Indian shipyards to build, aimed at streamlining public procurement and boosting efficiency.
India’s ship repair sector also got a major boost with the inauguration of the ₹970 crore International Ship Repair Facility (ISRF) at Cochin Shipyard Limited. This facility is expected to reduce India’s reliance on foreign docks and position Kochi as a regional hub for maritime maintenance.
To groom future talent, shipbuilders like Cochin Shipyard and Mazagon Dock Shipbuilders are now part of the Prime Minister’s Internship Scheme, opening doors for young engineers and maritime professionals.
“Our maritime sector is central to India’s economic resurgence,” said Sonowal. “We are not just building ships; we are building a resilient, self-reliant India.”
These reforms, backed by visionary policymaking and sustained investment, signal India’s firm resolve to emerge as a dominant force in the global shipbuilding arena.
Source: PIB
