Budget 2025-26 announces a ₹25,000 Cr Maritime Development Fund, new shipbuilding clusters, and port modernisation.
In a landmark move to strengthen India’s maritime sector, the Union Budget 2025-26 has announced transformative initiatives, including the ₹25,000 crore Maritime Development Fund (MDF), mega shipbuilding clusters, and incentives for shipbreaking, port modernization, and inland waterways. Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal, hailed the budget as a progressive step toward realising Prime Minister Narendra Modi’s vision of Viksit Bharat by 2047.
Maritime Development Fund (MDF): ₹25,000 Cr for Sectoral Growth
A ₹25,000 crore MDF will be established to provide financial aid to India’s shipping sector. The government will contribute 49%, while major port authorities, PSEs, financial institutions, and private investors will provide the remaining funds.
- MDF will finance ship acquisition, helping Indian-flagged ships increase their share in global cargo to 20% by 2047.
- It aims to generate ₹1.5 lakh crore investments by 2030.
- Indigenous fleet expansion will reduce foreign dependency, improve the balance of payments, and secure strategic maritime interests.
Mega Shipbuilding Clusters & Modernization Drive
The government will set up new mega shipbuilding clusters of 1.0 to 1.2 million gross tonnage (GT) each, supporting India’s goal of becoming a $30 trillion economy by 2047.
- These clusters will be developed via Public-Private Partnership (PPP) to attract private investment and advance green technologies.
- Direct capital support will be provided for breakwater construction and capital dredging.
- A 10-year rent holiday is proposed for land allocation at nominal rates.
- ₹6,100 crore allocated to upgrade, modernise, and automate Indian shipyards, boosting efficiency and output.
Shipbuilding Financial Assistance Policy (SBFAP) 2.0 Revamp
To address cost disadvantages and enhance Indian shipyard competitiveness, SBFAP 2.0 will provide direct financial subsidies to domestic shipbuilders.
- Total outlay: ₹18,090 crore.
- The scheme will help Indian shipyards secure more orders and boost domestic production.
New Credit Note Scheme for Shipbreaking Industry
A shipbreaking credit note scheme has been introduced to encourage scrapping in Indian yards.
- A 40% credit note on scrap value can be used to purchase new Made-in-India ships.
- This initiative will strengthen the domestic shipbuilding ecosystem.
Customs Duty Exemption & Tax Benefits
The Basic Customs Duty (BCD) exemption on shipbuilding and shipbreaking was extended for 10 years, reducing costs for the industry.
- Large ships will be included in the Infrastructure Harmonised Master List (HML), enabling long-term financing and tax incentives.
Investment in Maritime Research, Training & Development
To develop skilled professionals, the government has allocated funds for training and innovation:
- ₹1,200 crore for Shipbuilding Capability Development Centres (SCDC) to drive innovation and testing.
- ₹1,040 crore for private-sector shipbuilding design and training centres.
- ₹610 crore for R&D in ship technology, fostering innovation in automation and sustainable maritime practices.
- Expected to generate 11 lakh direct and indirect jobs.
Boost to Inland Waterways & Tonnage Tax Benefits
- Tonnage Tax Scheme extended to inland vessels, reducing tax burdens on cargo movement.
- PM Gati Shakti Portal access expanded to private players, improving multimodal logistics efficiency.
A Maritime Vision for Viksit Bharat
Shri Sarbananda Sonowal emphasised that these initiatives will drive capital inflows, employment, and sectoral growth, strengthening India’s position as a global maritime powerhouse. With record investment, incentives, and modernisation, Budget 2025-26 lays the foundation for India’s shipbuilding and shipping dominance on the world stage.
(SOURCE: PIB Delhi)
