India to Invest ₹2 Trillion in Sustainable Maritime Expansion
The Indian government has pledged an investment of ₹2 trillion to revitalise its shipbuilding sector and position the nation among the top five shipbuilding countries globally by 2047. This monumental step is set to significantly enhance India’s maritime capabilities and foster long-term economic growth.The Ministry of Ports, Shipping, and Waterways (MoPSW) revealed that the primary focus of this investment will be on expanding the nation’s capacity to build ships at a larger scale. The initiative is projected to increase the annual shipbuilding capacity to an impressive 4 million gross registered tonnage (GRT), ensuring that India becomes a dominant player in the global maritime landscape.
A key component of the government’s strategy includes a thorough review of the Shipbuilding Financial Assistance Policy (SBFAP), which will now offer enhanced support to domestic shipyards. This policy revision is aimed at creating a favourable environment for local shipbuilders, encouraging innovation, and improving competitiveness in the global market.In line with its commitment to sustainable growth, the government has redefined the Right of First Refusal (RoFR) framework, giving priority to ships that are Indian-built, -flagged, and -owned. Under this revamped policy, these ships will be eligible for government contracts, putting them ahead of foreign-built and foreign-flagged vessels, even if they offer the most attractive bids. This move is expected to provide a significant boost to domestic shipyards, further stimulating the growth of the sector.
To further enhance India’s maritime sector, the government is launching several initiatives, including the creation of the Bharat Container Shipping Line under the Shipping Corporation of India (SCI). The new line is expected to enhance India’s cargo handling capacity, while also helping the country build a stronger maritime identity.
In addition to expanding capacity, India is also placing a strong emphasis on environmental sustainability. One of the flagship programs under this initiative is the Green Tug Transition Program (GTTP), which aims to reduce carbon emissions in the maritime sector. The goal is to transition 50% of tug operations to zero-emission alternatives by 2030 and achieve fully green operations by 2047.
To promote low-emission maritime transportation within India, the government is also developing a Coastal Green Shipping Corridor. This corridor will initially cover the Kandla-Tuticorin route, and will be implemented in collaboration with key stakeholders, including SCI, Deendayal Port Authority, and the Chidambaranar Port Authority.
This ₹2 trillion investment represents a monumental step in India’s efforts to modernise its maritime sector. By focusing on sustainable growth, enhancing domestic shipbuilding capabilities, and reducing the environmental impact of maritime operations, India is set to solidify its position as a global leader in shipbuilding and maritime trade.
