New Delhi Ramps Up Shipbuilding Reforms to Strengthen Indias Maritime Ecosystem by 2047
India’s maritime sector is undergoing a profound structural transformation, driven by sweeping government reforms aimed at fostering global competitiveness and self-reliance. These measures are strategically aligned with the national vision of a developed India by 2047 and the ambitious Maritime India Vision 2030. The comprehensive strategy focuses on financial incentives, expanded infrastructure, and streamlined procurement to position the country as a major player in the global shipbuilding and ship repair industry.
At the heart of this reform push is a redesigned financial assistance policy designed to mitigate the cost disadvantages faced by domestic shipyards. This policy, coupled with the inclusion of large vessels in the Infrastructure Harmonised Master List, is a game-changer. This reclassification allows shipbuilding companies to access long-term, low-interest institutional financing and issue infrastructure bonds, crucial for scaling up production capacity sustainably. This move is a powerful statement about the government’s intent to create a robust and equitable financial environment, ensuring that the industry’s growth is built on a solid, long-term foundation.
A cornerstone of this maritime strategy is the proposed ₹25,000 crore Maritime Development Fund. With up to 49% government participation, this fund is engineered to attract private and port-led investments, effectively bridging the long-term capital gaps that have traditionally hindered the sector’s expansion. By supporting both shipbuilding and ship repair, the fund aims to establish India as a regional hub for maritime maintenance in the Indian Ocean, a move that will reduce foreign dependency and create thousands of direct and indirect jobs for a diverse and skilled workforce.
To further bolster the domestic industry, customs duty exemptions on raw materials and components have been extended for another decade. This measure is crucial for lowering input costs, giving Indian shipyards a competitive edge against established players, particularly in East Asia. Additionally, the government’s public procurement policies, including the Right of First Refusal for public sector tenders and reserving contracts under ₹200 crore for domestic builders, underscore a firm commitment to nurturing local talent and enterprise. The introduction of five standardized tug designs, to be built exclusively in India, is a prime example of this strategy, promoting efficiency and cost-effectiveness across major ports.
Beyond the financial and procurement reforms, a significant focus is on developing a skilled and future-ready workforce. The inauguration of the International Ship Repair Facility in Kochi, costing ₹970 crore, is a vital step in this direction, positioning the city as a regional repair hub. This infrastructure is complemented by skill development initiatives through major shipyards, which are now registered under a national internship scheme. By providing hands-on training, these programs are cultivating the next generation of marine engineering and shipbuilding professionals, ensuring the industry’s sustained growth and creating a truly gender-neutral pathway for aspiring young Indians. The holistic vision of these reforms is a testament to India’s resolve to build a self-reliant, sustainable, and globally competitive maritime future.
