INDUSTRY
Shipbuilding and maritime gets Union Cabinet’s Rs 70,000-crore boost
- IBJ Bureau
- Sep 25, 2025
The Union Cabinet has approved around Rs 70,000-crore package for the shipbuilding and maritime sector.
“In a transformative push for maritime self-reliance, the Cabinet approved a package to rejuvenate India’s shipbuilding and maritime sector. This historic move will unlock 4.5 million gross tonnage capacity, generate jobs and attract investments,” Prime Minister Narendra Modi has said in a social media post.
According to a government statement, the package comprises of a four-pillar approach designed to strengthen domestic capacity, improve long-term financing, promote greenfield and brownfield shipyard development, enhance technical capabilities and skilling, and implement legal, taxation and policy reforms to create a robust maritime infrastructure.
It is expected to generate nearly 30 lakh jobs and attract investments of approximately Rs 4.5 lakh crore into India’s maritime sector.
“Beyond its economic impact, the initiative will strengthen national, energy and food security by bringing resilience to critical supply chains and maritime routes,” the statement adds.
Under this package, the Shipbuilding Financial Assistance Scheme will be extended until March 31, 2036, with a total corpus of Rs 24,736 crore. The scheme aims to incentivise shipbuilding in India and includes a Shipbreaking Credit Note with an allocation of Rs 4,001 crore.
“A National Shipbuilding Mission will also be established to oversee the implementation of all initiatives,” the statement has said
In addition, the Maritime Development Fund has been approved with a corpus of Rs 25,000 crore to provide long-term financing for the sector. This includes a Maritime Investment Fund of Rs 20,000 crore with 49 per cent participation from the Central government and an Interest Incentivisation Fund of Rs 5,000 crore to reduce the effective cost of debt and improve project bankability.
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