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India is ramping up its shipbuilding capacity as part of a broader effort to transform into a global maritime power, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said in Parliament on Thursday. Responding to a starred question during the Lok Sabha’s monsoon session, Sonowal highlighted a slew of reforms and investments announced in the Union Budget 2025 aimed at propelling India’s maritime ambitions under the Maritime India Vision 2030 and Amrit Kaal roadmap.
“The shipbuilding sector is undergoing a major transformation under Prime Minister Narendra Modi’s leadership, with a clear focus on building a world-class maritime ecosystem to power a Viksit Bharat by 2047,” Sonowal said.
Among the key announcements is the proposed Rs 25,000 crore Maritime Development Fund, with up to 49% government equity, designed to mobilise long-term capital and attract private and port-led investments in shipbuilding and repair.
To improve global competitiveness, the government is revamping the Shipbuilding Financial Assistance Policy to help domestic shipyards overcome cost disadvantages. Additionally, credit notes have been introduced for ship-breaking activities, promoting sustainability and circularity in the maritime economy.
Large vessels above a specified size will now be included in the Infrastructure Harmonised Master List, making them eligible for long-term, low-interest institutional financing. The government will also facilitate integrated shipbuilding clusters with modern yards, skill centres, and advanced technology to expand the range and capacity of ships built in India.
Tax exemptions on Basic Customs Duty (BCD) for raw materials and components used in shipbuilding and ship-breaking have been extended by 10 years, acknowledging the long gestation period of the industry.
“These budgetary interventions underscore our commitment to empowering India’s maritime sector and building self-reliant capabilities,” Sonowal said.
The Budget 2025 reforms build on existing measures, including infrastructure status for shipyards, which has unlocked access to institutional finance and infrastructure bonds. Indian yards currently receive financial assistance for contracts signed between April 2016 and March 2026.
To give Indian shipbuilders an edge in public procurement, the Right of First Refusal (ROFR) continues for tenders floated by PSUs. Under the Public Procurement (Preference to Make in India) Order, 2017, all government vessels valued below Rs 200 crore must be sourced from Indian shipyards.
Five standardised tugboat designs have also been released for major ports, mandated to be built in Indian shipyards, to enhance efficiency, reduce procurement time, and cut costs.
On the ship repair front, Cochin Shipyard Limited (CSL) recently inaugurated a Rs 970 crore International Ship Repair Facility (ISRF) in Kochi, a major step towards reducing India’s dependence on foreign docks and positioning it as a regional hub for maintenance.
To support workforce development, both CSL and Mazagon Dock Shipbuilders Ltd (MDL) have been brought under the Prime Minister’s Internship Scheme, giving young engineers hands-on training in cutting-edge marine technologies.
“India is not just building ships, we are building a resilient future,” Sonowal said. “A strong, self-reliant shipbuilding industry will boost employment, enhance our global standing, and unlock new avenues for innovation and international collaboration.”
Team BharatShakti
