New Delhi, July 27 (APAC Media): India has approved a ₹69,725 crore package to strengthen India’s shipbuilding sector, improve access to long-term finance and build a skilled workforce.
The initiative aims to position India as a global shipbuilding hub. It also seeks to significantly expand the country’s domestic shipbuilding capacity.
The package, announced by the Ministry of Ports, Shipping and Waterways, follows the measures proposed in the Union Budget 2025-26 and forms part of the government’s long-term maritime development strategy.
Three Major Financial Components
The package includes three key schemes to support the sector.
The Shipbuilding Financial Assistance Scheme (SBFAS) has been allocated ₹24,736 crore to improve the competitiveness of Indian shipyards against global players.
Another ₹25,000 crore has been earmarked for the Maritime Development Fund (MDF) to provide long-term financial support to shipbuilding and the wider maritime sector.
The fund comprises a ₹20,000 crore Maritime Investment Fund and a ₹5,000 crore Interest Incentivisation Fund to lower financing costs for maritime projects.
The Shipbuilding Development Scheme (SbDS) has received an allocation of ₹19,989 crore for expanding infrastructure and shipbuilding capacity.
Target of 4.5 Million GT Capacity
Under the development scheme, the government aims to raise India’s annual shipbuilding capacity to 4.5 million Gross Tonnage (GT).
The plan includes setting up greenfield shipbuilding clusters and expanding existing shipyards to meet future domestic and international demand.
New Shipbuilding Clusters Approved
The Centre has granted in-principle approval for three new shipbuilding clusters in Andhra Pradesh, Gujarat and Tamil Nadu.
It has also approved expansion proposals for four existing shipyards, involving shipbuilding and ship-repair facilities with an estimated investment of over ₹2,500 crore.
Over 400 Vessels Planned
To provide long-term order visibility, the government has prepared a fleet acquisition plan covering more than 400 vessels.
Infrastructure status has also been extended to large Indian-flagged commercial vessels, with lower eligibility thresholds for ships built in India to encourage domestic manufacturing.
Focus on Skill Development
Skill development forms a key pillar of the package.
So far, 11 shipyards have partnered with 34 Industrial Training Institutes (ITIs) across eight coastal states for on-the-job training.
More than 92,000 candidates have been trained or upskilled over the past three years.
The government has also partnered with the Korea International Cooperation Agency (KOICA) to strengthen shipbuilding skills.
It has established the India Ship Technology Centre (ISTC) to promote ship design, research, innovation and advanced technologies in the sector.
Shipbuilding Output Sees Strong Growth
According to the latest UNCTAD data cited by the government, India’s shipbuilding output increased by 41%, rising from 40,923 GT in 2024 to 57,637 GT in 2025.
The government said the sector has also secured financial assistance approvals for shipbuilding contracts worth ₹15,234 crore over the past two years.
Boosting India’s Maritime Ambitions
The ₹69,725 crore package is expected to strengthen India’s maritime ecosystem by supporting finance, infrastructure, technology and skilled manpower.
The government believes the initiative will improve global competitiveness, generate employment and accelerate India’s emergence as a leading shipbuilding nation.
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