Rs 70,000 Crore Push To Strengthen India's Shipbuilding Sector

2025-09-22 02:08:53

(MENAFN- KNN India) New Delhi, Sep 22 (KNN) Prime Minister Narendra Modi on Saturday announced three major schemes with a combined investment of over Rs 70,000 crore to strengthen India's shipbuilding industry and reduce dependence on foreign vessels.

The move aims to position India among the world's top 10 nations in shipbuilding and ship ownership while boosting the share of global cargo handled at Indian ports three-fold.

Currently, India ranks 16th globally in both shipbuilding and ship ownership. Only 7 per cent of Indian-owned ships are built domestically, while the share of export-import (EXIM) cargo carried by Indian ships has dropped from 41 per cent in FY1988 to just 5 per cent in FY2023.

This reliance on foreign shipping services costs India nearly Rs 6 lakh crore annually, almost equivalent to the defence budget, Modi noted during his address in Bhavnagar.

The three schemes include the Rs 25,000-crore Shipbuilding Financial Assistance Scheme, which will provide financial aid to shipbuilders. Another Rs 25,000 crore will be allocated to a Maritime Development Fund, offering long-term, low-cost financing to industry players.

The third initiative, the Shipbuilding Development Scheme (SDS) worth Rs 20,000 crore, will support infrastructure creation for greenfield shipbuilding mega clusters, capacity expansion at existing shipyards, and the setting up of an apex body for capability development.

Officials said the SDS is particularly significant as it would provide credit risk cover and help Indian shipbuilders compete globally. The schemes are expected to create nearly two crore direct and indirect jobs.

Sources also highlighted that the government drew lessons from China and South Korea, which rapidly scaled their shipbuilding industries through financial support and cluster-based growth.

The Cabinet is likely to approve the schemes within two weeks. Four land parcels in Odisha, Andhra Pradesh, Gujarat, and Tamil Nadu have already been earmarked for developing greenfield shipbuilding and repair hubs.

(KNN Bureau)

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