New Delhi, September 24, 2025 – Acknowledging the vital role of the maritime industry in national strategy and economy, the Union Cabinet, under the chairmanship of Prime Minister Shri Narendra Modi, has sanctioned a comprehensive Rs. 69,725 crore initiative to rejuvenate India’s shipbuilding and maritime framework. This multi-faceted program adopts a four-pronged strategy to bolster local manufacturing, secure sustainable funding, foster new and upgraded shipyard projects, upgrade skills and technical expertise, and enact reforms in laws, taxes, and policies to build a resilient maritime network.
Key elements include extending the Shipbuilding Financial Assistance Scheme (SBFAS) through March 31, 2036, with a Rs. 24,736 crore allocation. The scheme seeks to encourage domestic vessel construction and incorporates a Rs. 4,001 crore Shipbreaking Credit Note. A dedicated National Shipbuilding Mission will coordinate all related activities.
Complementing this, the Maritime Development Fund (MDF) receives Rs. 25,000 crore for extended-term financing, comprising a Rs. 20,000 crore Maritime Investment Fund (with 49% government stake) and a Rs. 5,000 crore Interest Incentivization Fund to lower borrowing costs and enhance project viability. The Rs. 19,989 crore Shipbuilding Development Scheme (SbDS) targets scaling up annual shipbuilding to 4.5 million Gross Tonnage, developing large-scale shipyard clusters, infrastructure upgrades, launching the India Ship Technology Centre via the Indian Maritime University, and offering risk mitigation through insurance for shipbuilding ventures.
The package is projected to enable 4.5 million Gross Tonnage in shipbuilding output, create around 30 lakh employment opportunities, and draw in Rs. 4.5 lakh crore in investments for the maritime domain. Economically transformative, it will fortify national, energy, and food security by safeguarding essential supply chains and sea routes. The effort also bolsters India’s geopolitical stability and self-sufficiency, aligning with the Aatmanirbhar Bharat agenda and elevating the country’s stature in international shipping and shipbuilding.
India boasts a storied maritime legacy, spanning ages of global trade and navigation that linked the region to distant lands. Presently, the sector underpins the economy, handling about 95% of trade volume and 70% by value. Central to this is shipbuilding—termed the “foundation of heavy industry”—which drives jobs, investments, national defense, strategic autonomy, and the durability of trade and energy logistics.
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