The Union Cabinet approved ₹69,725 crore package to empower maritime sector. Anchored on a four-pillar approach—financing, capacity, technology, and reforms—this initiative aims to make India a global shipbuilding hub. Key components include extending Shipbuilding Financial Assistance Scheme (SBFAS), establishing a ₹25,000 crore Maritime Development Fund (MDF), and creating a dedicated Shipbuilding Development Scheme (SbDS).
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Picture Courtesy: DDNEWS
The Union Cabinet has approved a ₹69,725 crore package to strengthen India’s shipbuilding and maritime ecosystem. The initiative, anchored on a 4-Pillar Approach to boost financing, capacity, technology, and reforms.
A comprehensive policy framework for India’s maritime ecosystem, extending till 2036.
Covers financial incentives, long-term financing, shipyard development, skill enhancement, and reforms.
Objectives
Expand domestic shipbuilding capacity to 4.5 million Gross Tonnage (GT).
Generate nearly 30 lakh jobs.
Attract ₹4.5 lakh crore investment.
Strengthen energy, food, and national security through resilient maritime supply chains.
Shipbuilding Financial Assistance Scheme (SBFAS)
Maritime Development Fund (MDF)
Shipbuilding Development Scheme (SbDS)
National Shipbuilding Mission & Reforms
Job Creation & Investment
Strategic Autonomy
National Security
Technology & Green Transition
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Indian Shipbuilding Sector Growing valuation: The industry's valuation has surged from $90 million in 2022 to $1.12 billion in 2024, with projections to reach $8 billion by 2033. Small global share: Despite its growth, India's share of the global shipbuilding market remains less than 1%, dwarfed by global leaders like China, South Korea, and Japan. Dual structure: The sector operates with two types of shipyards:
Heavy reliance on foreign vessels: India's heavy reliance on foreign ships for international trade leads to billions in annual freight payments exiting the country. |
Global Competition: India lags behind giants like China, South Korea, and Japan.
Capital Intensive Sector: Shipbuilding requires high upfront investment, long gestation.
Policy Execution: Past shipping policies suffered delays in fund disbursal.
Skill Gaps: Requires large pool of trained technical manpower.
Market Volatility: Shipping sector highly vulnerable to global trade cycles.
Effective Implementation: Strict monitoring under the National Mission.
Public–Private Partnerships (PPP): Leverage private expertise in shipyards and ports.
Global Collaboration: Partnerships with advanced shipbuilding nations for technology transfer.
Green Innovation: Position India as a hub for eco-friendly vessels and sustainable shipping.
Integrated Blue Economy Policy: Align with Sagarmala, Maritime India Vision 2030, and Amrit Kaal Maritime Vision 2047.
Source: DDNEWS
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PRACTICE QUESTION Q. Analyse the strategic importance of reducing dependence on foreign shipyards for national security. 150 words |
The Indian shipbuilding industry is growing rapidly, with its market value increasing from $90 million in 2022 to $1.12 billion in 2024.
Global leaders like China, South Korea, and Japan command over 85% of the shipbuilding market due to strong government support, technological advancement, and a robust supply chain. India's share of the global market remains small, at less than 1%.
The credit note is an incentive to encourage the recycling of old ships in India, supporting a circular economy within the maritime sector.
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