Cabinet Approves ₹69,725 Crore Plan to Transform India’s Shipbuilding and Maritime Sector
- MGMMTeam
- Sep 24
- 3 min read
In a landmark decision on September 24, 2025, the Union Cabinet, led by Prime Minister Narendra Modi, approved a comprehensive ₹69,725 crore package aimed at revitalizing India’s shipbuilding and maritime infrastructure. The initiative marks a strategic push to strengthen domestic capabilities, enhance maritime infrastructure, and position India as a global leader in the shipbuilding sector.
Strategic Vision and Objectives
The government’s maritime initiative is designed to significantly enhance India’s shipbuilding capacity, reduce reliance on foreign shipyards, and boost indigenous manufacturing. By investing in advanced shipbuilding technologies, maritime infrastructure, and skill development, India aims to create a sustainable ecosystem for shipbuilding. Additionally, the plan focuses on generating substantial employment opportunities and attracting investments, ultimately positioning India among the top global nations in shipbuilding and ship ownership.
Shipbuilding Development Scheme (SbDS)
A major component of the package is the Shipbuilding Development Scheme, allocated ₹19,989 crore. This scheme seeks to expand India’s shipbuilding capacity to 4.5 million Gross Tonnage annually. It emphasizes the development of mega shipbuilding clusters, alongside the establishment of the India Ship Technology Centre under the Indian Maritime University. Through risk coverage, insurance support, and promotion of advanced shipbuilding technologies, the scheme aims to enhance both efficiency and competitiveness within the domestic shipbuilding sector.
Maritime Development Fund (MDF)
The Maritime Development Fund, with a corpus of ₹25,000 crore, is intended to provide long-term, low-cost financing for shipbuilding and maritime infrastructure projects. The fund will leverage contributions from the government, ports, and private stakeholders, with the government contributing up to 49 percent. By facilitating easier access to finance, the MDF is expected to encourage domestic shipbuilders to scale operations and invest in modern infrastructure, aligning with the broader ‘Make in India’ vision.
Shipbuilding Financial Assistance Scheme (SFAS)
The Shipbuilding Financial Assistance Scheme, receiving ₹24,736 crore, is designed to reduce financial burdens on domestic shipbuilders. By providing subsidies and interest rate support, the scheme aims to make shipbuilding projects more viable and promote the construction of vessels entirely within India. This initiative reinforces the government’s commitment to fostering a self-reliant maritime industry.
Skill Development and Green Initiatives
Human capital and sustainability are integral to the package. A dedicated ₹500 crore is allocated for maritime skill development and research, focusing on training programs, scholarships, and the establishment of research centers. In parallel, ₹1,236 crore is earmarked for green shipping initiatives. These funds will support the adoption of eco-friendly technologies, retrofitting of vessels, and the construction of energy-efficient ships, ensuring alignment with global environmental standards.
Strategic Implications and Long-Term Impact
This comprehensive plan reflects India’s strategic ambition to strengthen its maritime capabilities. By boosting domestic shipbuilding capacity, modernizing infrastructure, and fostering innovation, the initiative aims to reduce dependency on foreign shipyards while promoting sustainable and cost-effective shipping practices. Moreover, the package is expected to generate around three million jobs and attract investments worth approximately ₹4.5 lakh crore, contributing significantly to economic growth.
The MGMM Outlook
The Union Cabinet’s approval of a ₹69,725 crore plan for India’s shipbuilding and maritime sector is a strategic leap toward self-reliance and global competitiveness. This initiative strengthens domestic shipbuilding capabilities, reduces dependency on foreign yards, and promotes indigenous manufacturing through advanced technologies. With the Shipbuilding Development Scheme and the establishment of mega shipbuilding clusters, India is poised to increase its annual shipbuilding capacity while fostering innovation, skill development, and employment generation. The government’s focus on financial support through the Maritime Development Fund and Shipbuilding Financial Assistance Scheme ensures that domestic shipbuilders can expand operations, modernize infrastructure, and align with the broader “Make in India” vision.
Beyond industrial growth, the plan emphasizes sustainability and human capital, allocating funds for maritime skill development, research, and green shipping initiatives. By integrating eco-friendly technologies and energy-efficient ship construction, India sets a benchmark for environmentally responsible maritime practices. This comprehensive approach demonstrates a forward-looking strategy that not only strengthens the nation’s maritime ecosystem but also contributes to broader economic growth, innovation, and strategic autonomy, reflecting India’s commitment to becoming a global maritime leader.
(Sources: Moneycontrol, Economic Times, Livemint)
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