India Targets Top 5 Spot In Global Shipbuilding By 2047 With New Coastal Shipping Law

(MENAFN- KNN India) New Delhi, Aug 7 (KNN) The Indian government is introducing a legal measure to strengthen its shipbuilding industry, in addition to upcoming fiscal and financial incentives aimed at propelling India into the top five global shipbuilding nations by 2047.

A key component of this push is the Coastal Shipping Bill, which has already passed the Lok Sabha and awaits approval from the Rajya Sabha.

The bill seeks to update regulations for vessels operating in India's coastal and export-import (EXIM) trade.

Under the proposed law, Indian-flagged ships will no longer require a licence from the Directorate General (DG) of Shipping to operate in coastal or EXIM trade.

However, foreign-flagged vessels will be required to obtain licences. These licences may include specific conditions such as mandatory employment of Indian seafarers or use of India-built vessels, aimed at boosting local jobs and shipbuilding capacity.

According to officials, these measures are intended to create demand for domestically built ships and generate employment in the maritime sector.

However, industry experts have criticised the plan as unrealistic, citing India's limited capacity to build ships at scale.“Requiring foreign shipowners to use India-built ships or hire Indian crew is impractical without sufficient shipbuilding infrastructure,” one expert said.

To support the initiative, the government is also finalising a new shipbuilding policy, which includes financial assistance of up to 25 per cent for green ships, a ship recycling credit note scheme, and a Rs 25,000 crore Maritime Development Fund (MDF) for long-term financing.

India currently holds just 0.06 per cent of the global shipbuilding market, ranked 20th. The government aims to reach the top 10 by 2030 and the top 5 by 2047 through this multi-pronged strategy.

(KNN Bureau)

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