India Ramps Up Shipbuilding Ambitions to Emerge as Global Maritime Power

New Delhi: India's shipbuilding sector is undergoing a major transformation as the government under Prime Minister Narendra Modi intensifies efforts to establish the country as a leading global maritime force, according to Sarbananda Sonowal, Union Minister of Ports, Shipping and Waterways.

Speaking during the monsoon session of the Lok Sabha, Sonowal highlighted the government's commitment to the Maritime India Vision 2030 and the broader strategic roadmap of Amrit Kaal. The Union Budget 2025 includes significant reforms and investments designed to boost the competitiveness and capacity of Indian shipyards.

“These initiatives will help solidify India’s status as an emerging maritime power,” Sonowal stated.

One of the key measures includes a revamped Shipbuilding Financial Assistance Policy, aimed at bridging cost disadvantages faced by Indian shipyards and placing them on a level playing field with global counterparts.

In support of sustainability, the government has introduced credit notes for ship-breaking activities in Indian yards, promoting a circular maritime economy.

Large ships exceeding a specified size will now be listed under the Infrastructure Harmonised Master List, allowing them to access long-term, low-interest financing — a step expected to attract significant infrastructure investment.

Additionally, the government plans to establish integrated shipbuilding clusters with advanced infrastructure, skill development centres, and modern technologies to enhance the variety, category, and capacity of ships built domestically.

In a landmark decision to address the capital needs of the shipbuilding industry, a Rs 25,000 crore Maritime Development Fund has been proposed, with up to 49% government participation. This fund will encourage private sector and port-led investment in shipbuilding and repair.

Recognising the long-term nature of shipbuilding projects, the government has extended Basic Customs Duty (BCD) exemptions on raw materials and components used in both shipbuilding and ship-breaking for an additional 10 years.

“Our commitment to empower the maritime sector is unwavering. Under the visionary leadership of PM Modi, we are implementing reforms that will enable India to lead on the global maritime stage,” Sonowal affirmed.

To enhance the global competitiveness of Indian shipbuilders, the Right of First Refusal (ROFR) has been extended to them for tenders issued by public sector units. Furthermore, under the Public Procurement (Preference to Make in India) Order 2017, all vessels valued under Rs 200 crore must be sourced from Indian shipyards — reinforcing the push for self-reliance in maritime manufacturing.

On the repair front, Cochin Shipyard Limited has launched a state-of-the-art International Ship Repair Facility (ISRF) in Kochi, built at a cost of Rs 970 crore.

With inputs from IANS