The Indian government has approved an aid package worth up to 697.25 billion rupees (approximately US$7.86 billion) to revitalize India’s shipbuilding industry and the overall marine ecosystem.
According to information disclosed by India’s Ministry of Ports, Shipping and Waterways (MoPSW), the core vision of the financing plan includes revitalizing domestic production capacity, improving long-term financing channels, supporting the development of new and renovated shipyards, improving technical skills, and building a “robust” maritime infrastructure through legal, tax and policy reforms.
MoPSW executives said that under the framework of the plan, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended to the end of March 2036, with a total of 247.36 billion rupees (about US$2.79 billion) in funds; a financing amount of 40.01 billion rupees (about US$451 million) will be provided for ship dismantling credit certificates, etc.
The Indian government will set up a National Shipbuilding Mission to coordinate and oversee the implementation of various initiatives.
The MoPSW also revealed that the Indian government’s “Maritime Development Fund,” first announced earlier this year, has been formally approved. The fund will include a 200 billion rupee (approximately US$2.26 billion) government contribution and a 50 billion rupee (approximately US$563 million) interest incentive fund to reduce debt costs and improve project financing viability.
To stimulate the development of the shipbuilding industry, India will also promote a Shipbuilding Development Scheme (SbDS) with a budget of 199.89 billion rupees (approximately US$2.25 billion). The SbDS aims to increase India’s domestic shipbuilding capacity to an annual production capacity of 4.5 million gross tons, support large-scale shipbuilding clusters and infrastructure expansion, and establish an Indian Ship Technology Center under the Indian Maritime University to provide risk protection and insurance support for related projects.
As early as March this year, MoPSW had disclosed the relevant plan, announcing that it would invest up to 2 trillion rupees (about US$23.8 billion) to revitalize the shipbuilding industry.
The maritime industry is a cornerstone of India’s economy, estimated to support nearly 95% of the country’s trade volume and 70% of its trade value. Faced with increasingly stringent environmental regulations, India is accelerating its response through various initiatives and collaborations.
For example, Danish shipping giant Maersk reached a collaboration with India’s Cochin Shipyard in February 2025 to jointly explore opportunities in ship repair, construction, and maintenance. Mediterranean Shipping Company and CMA CGM soon followed suit, announcing their commitment to supporting India’s development into a “global maritime hub”. Mitsui OSK Lines also recently announced plans to build ships in India.