Officials said the initiative boosts jobs, investment, and strengthens security, aiding Aatmanirbhar Bharat and India’s global shipping leadership
New Delhi
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹69,725 crore package to strengthen India’s shipbuilding and maritime sector. The plan is expected to create nearly 30 lakh jobs, unlock 4.5 million Gross Tonnage of shipbuilding capacity, and attract investments worth ₹4.5 lakh crore.
A key component is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) till March 2036, with a corpus of ₹24,736 crore. The scheme also includes a Shipbreaking Credit Note worth ₹4,001 crore. To oversee these initiatives, a National Shipbuilding Mission will be launched.
The package follows a four-pillar strategy to build domestic capacity, improve financing, encourage greenfield and brownfield shipyard projects, enhance technical skills, and push legal, tax, and policy reforms. The aim is to develop robust infrastructure for global competitiveness.
The Cabinet also approved a Maritime Development Fund of ₹25,000 crore, including a ₹20,000 crore Maritime Investment Fund with 49 percent government share and a ₹5,000 crore Interest Incentivisation Fund to reduce borrowing costs.
Additionally, the Shipbuilding Development Scheme (SbDS) with ₹19,989 crore has been introduced. It will expand domestic shipbuilding capacity, support mega shipbuilding clusters, create the India Ship Technology Centre under Indian Maritime University, and provide risk coverage including insurance support.
Officials highlighted that beyond jobs and investment, the initiative will strengthen national, energy, and food security by making supply chains more resilient. It is also seen as a step toward Aatmanirbhar Bharat, enhancing India’s strategic independence and positioning the country as a global leader in shipping.
Currently, the maritime sector handles nearly 95 percent of India’s trade by volume and 70 percent by value.