Indian government is poised to unveil a new shipbuilding incentive scheme that aims to elevate India’s shipbuilding sector into the global top tier. The Ministry of Ports, Shipping, and Waterways (MoPSW) is drafting a plan that will provide substantial support to Indian shipyards until 2035, with an ambitious target of propelling the country from its current 22nd rank in global shipbuilding to within the top 10 by 2030, and the top five by 2047.
The announcement was made by T.K. Ramachandran, Secretary of MoPSW, who confirmed that the government is committed to promoting India’s shipbuilding capabilities through various incentives and policy reforms. The initiative aligns with the country’s Maritime India Vision 2030 and the broader Maritime Amrit Kaal Vision 2047, which are designed to position India as a global maritime superpower. One of the key features of this scheme is a focus on sustainability. The government will offer 30% financial assistance for vessels powered by green fuels such as methanol, ammonia, or hydrogen fuel cells, marking India’s entry into the emerging green shipping market. Ships with electric or hybrid propulsion systems will also benefit from 20% financial support, reinforcing the government’s commitment to decarbonising the maritime sector.
While India’s shipbuilding industry is strategically important, accounting for significant economic and employment potential, it faces challenges such as inefficiencies, limited private participation, and a lack of policy support. Currently, India holds a mere 0.05% share of the global shipbuilding market, compared to dominant players like South Korea, China, and Japan, which together control over 90% of global production. This imbalance creates a prime opportunity for India to expand its shipbuilding capacity. With global shipyards fully booked until 2028, India could become a key player in the global shipbuilding supply chain. Additionally, the rising demand for green ships to meet global decarbonisation targets presents a substantial opportunity for Indian shipyards, with the market expected to be worth $62 billion by 2047, potentially creating 12 million jobs. As India accelerates its efforts to become a global maritime leader, the shipbuilding sector could emerge as a vital pillar of economic growth, creating jobs, enhancing exports, and contributing to the country’s overall GDP.
