On March 14, India’s Ministry of Ports, Shipping and Waterways announced that the Indian government has, in principle, approved 288 shipbuilding contracts under the Shipbuilding Financial Assistance Policy (SBFAP). These contracts have a total value of 197.48 billion rupees (approximately US$2.139 billion) and cover 456 vessels of various types. Concurrently, financial assistance totaling 6.2057 billion rupees (approximately US$67 million) has been disbursed to 23 shipbuilders for the construction and delivery of 204 vessels.
The types of vessels approved for construction include: tugs, general cargo vessels, bulk carriers, oil tankers, crane pontoons, heavy deck cargo vessels, Ro-Pax vessels, crew transfer vessels, deck cargo barges, offshore research vessels, modular barges, catamaran passenger vessels, passenger-and-cargo motorcycle ferries, passenger vessels, landing craft, jack-up barges, and jack-up platforms.
In September 2025, the Indian government approved the Shipbuilding Development Scheme (SBDS). This scheme includes provisions to provide credit risk guarantees to Indian shipbuilders and offers viability gap funding—in the form of capital assistance—to existing Indian shipyards to support the expansion of their shipbuilding capacity.
Earlier in 2024, the government commissioned a third-party agency to conduct an assessment of India’s shipbuilding industry. The assessment report indicated that the industry possesses an employment multiplier effect as high as 6.4, demonstrating immense potential for generating both direct and indirect employment.
The report also notes that the development of India’s shipbuilding industry faces various challenges, including insufficient domestic demand, high financing costs, and limitations in capacity and technology. To address these challenges, the Indian government has approved the implementation of the Shipbuilding Financial Assistance Scheme (SBFAS), the Maritime Development Fund (MDF), and the Shipbuilding Development Scheme (SBDS) to enhance India’s global competitiveness in the shipbuilding and maritime sectors.
According to reports, the Indian government has recently released implementation guidelines for two major shipbuilding programs with a combined budget of 447 billion rupees, aimed at bolstering India’s domestic shipbuilding capabilities and enhancing its global competitiveness.
Under the SBFAP, with a total outlay of 247.36 billion rupees, the Indian government will provide financial assistance ranging from 15% to 25% per vessel, depending on the type of ship. Over the next decade, this policy is expected to support shipbuilding projects valued at approximately 960 billion rupees, stimulate the growth of India’s manufacturing sector, and create employment opportunities across the entire maritime value chain.