India’s shipbuilding industry has hailed the government’s ₹69,725-crore stimulus package, calling it a long-awaited turning point for the maritime sector, with both policymakers and industry leaders calling it a foundation for global competitiveness.
“This is a pivotal moment for India’s shipbuilding sector. We welcome the Union Cabinet’s approval of the ₹69,725 crore stimulus to strengthen India’s shipbuilding and maritime infrastructure,” said Rear Admiral Vipin Kumar Saxena (retd), CEO of Swan Defence and Heavy Industries.
Saxena underlined that the package goes beyond incremental support, pointing to the extension of the Shipbuilding Financial Assistance Scheme, the Maritime Development Fund, and the Shipbuilding Development Scheme as decisive measures.
“By focusing on expanding annual Gross Tonnage and developing mega shipbuilding clusters, the package enables Indian shipbuilders to scale infrastructure to global standards. It also makes the sector an attractive opportunity for both capital investment and knowledge sharing. The provision of long-term financing and risk mitigation reflects the kind of strategic support the industry has long awaited,” he added.
Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal echoed this optimism, writing on X: “PM Modi ji’s vision is transforming India’s maritime sector into a global powerhouse of growth. Gratitude for this landmark decision, which will enable us to chart a new course for Aatmanirbhar Shipbuilding and a Viksit Maritime sector.”
The Cabinet’s package is anchored in a four-pillar strategy that seeks to strengthen domestic capacity, improve long-term financing, support greenfield and brownfield shipyard development, enhance skilling and technology, and implement policy reforms.
According to an official statement, “the overall package is expected to unlock 4.5 million Gross Tonnage of shipbuilding capacity, generate nearly 30 lakh jobs, and attract investments of approximately ₹4.5 lakh crore into India’s maritime sector.”
A centrepiece of the plan is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 31, 2036, with a total corpus of ₹24,736 crore. The scheme, designed to incentivize shipbuilding in India, will now include a Shipbreaking Credit Note with an allocation of ₹4,001 crore. A National Shipbuilding Mission will be established to coordinate the rollout of all initiatives.
Financing support forms another crucial pillar. The government approved a Maritime Development Fund (MDF) of ₹25,000 crore, consisting of a Maritime Investment Fund of ₹20,000 crore with 49% government participation and an Interest Incentivization Fund of ₹5,000 crore to reduce borrowing costs and improve project bankability.
In addition, the Shipbuilding Development Scheme (SBDS), with an outlay of ₹19,989 crore, aims to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage annually. It will support the creation of mega shipbuilding clusters, infrastructure expansion, and the establishment of the India Ship Technology Centre under the Indian Maritime University. Risk coverage, including insurance support for projects, will also be provided.
Industry players say these steps align with India’s ambition to claim a larger share of the global shipbuilding market.
“The package signals to the world that India is serious about building maritime capacity at scale. For investors and technology partners, it opens the door to participate in a sector that is now backed by clear government commitment and long-term policy stability,” Saxena noted.
The government has emphasized that the initiative extends beyond economic gains. “It will strengthen national, energy, and food security by bringing resilience to critical supply chains and maritime routes. It will also reinforce India’s geopolitical resilience and strategic self-reliance, advancing the vision of Aatmanirbhar Bharat,” the official statement said.
