The Government of India has unveiled an ambitious plan to increase domestic production of merchant vessels, aiming to reduce dependence on foreign ships and strengthen the country’s maritime capabilities.
Strategic Vision & Policy Initiatives
The initiative is driven by the realization that India needs a robust fleet of domestically built merchant ships to safeguard trade routes, especially during geopolitical uncertainties. Key policies introduced include:
- Maritime Development Fund: A ₹25,000 crore fund to provide long-term, low-cost financing for shipbuilding, repair, and maritime infrastructure projects.
- Shipbuilding Financial Assistance Policy (SBFAP) 2.0: Offers direct financial subsidies to Indian shipyards to enhance global competitiveness.
- Shipbreaking Credit Note Scheme: Provides a 40% credit note on the scrap value of old ships, encouraging shipbreaking in Indian yards.
- Infrastructure Status for Large Vessels: Grants customs duty exemptions on components used in shipbuilding and ship repair.
Government’s Long-Term Goals
India aims to become one of the top 10 shipbuilding nations by 2030 and ascend to the top five by 2047. Union Minister of Ports, Shipping, and Waterways Sarbananda Sonowal emphasized that India has the strategic location, technological expertise, and cost advantages to emerge as a global shipbuilding powerhouse.
Industry Impact & Global Interest
The government has identified shipyard locations in Andhra Pradesh, Gujarat, and Tamil Nadu, with Japanese, Korean, and European shipbuilders expressing interest in collaborations. Indian banks are also being encouraged to accept ships as collateral for shipbuilding loans, addressing financing challenges in the sector.
With aggressive policy reforms and strategic investments, India’s shipbuilding industry is poised for rapid growth, reinforcing the country’s position as a maritime power.
For more updates on maritime developments and industry trends, stay tuned!
