The government considers granting infrastructure status to all shipping vessels, expanding access to financial support.
The Indian government is considering granting infrastructure status to the entire shipping sector, including all types of ships and vessels, according to sources familiar with the proposal. This move, under review by the finance ministry, would expand financial support options for the industry beyond the current infrastructure status limited to shipbuilding and shipyards.
The finance ministry is engaging with financial institutions, including the National Bank for Financing Infrastructure and Development, to explore additional funding and concessional support avenues. Infrastructure status currently enables shipyards to issue bonds and secure long-term, low-cost financing. Expanding these benefits to the entire shipping sector is expected to strengthen India’s domestic shipping capabilities.
The proposal aligns with recommendations from a parliamentary committee, which earlier this year advocated for infrastructure status for all vessels and suggested creating a dedicated marine finance program. This initiative aims to stimulate growth within the shipbuilding sector, vital to the Maritime India Vision 2030. The government’s goal is to elevate India’s global shipbuilding rank from 22 to the top 10.
To support domestic shipyards, the Shipbuilding Financial Assistance Policy scheme was launched, providing financial aid on contracts signed between 2016 and 2026, with subsidies decreasing gradually from 20 percent in 2016 to 11 percent in 2026. Additionally, plans are underway to establish shipbuilding hubs in five states, including Maharashtra, Andhra Pradesh, and Gujarat, as part of India’s strategic maritime vision.
