Centre unveils ₹69,725 crore shipbuilding finance package to boost Indian maritime competitiveness

The Indian government has announced a ₹69,725 crore finance package for the shipbuilding sector, including a ₹20,000 crore maritime development fund and a ₹19,989 crore shipbuilding development scheme.
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THULASI KAKKAT

Centre’s ₹69,725 crore finance package for the shipbuilding sector will boost the capacity and competitiveness of Indian companies, senior industry executives said on Wednesday.

“ Overall the cabinet decisions are very positive and show that government is serious about shipbuilding sector. Currently, Chinese shipbuilders have on an average 24 per cent cost advantage over Indian firms because they have access to subsidised steel and lower interest rates. The Shipbuilding Finance Assistance Scheme will increase competitiveness of Indian shipyards,” said Arjun Chowgule, executive director of Chowgule Group. 

Boosting maritime infrastructure, competitiveness

The government package is designed to build a robust maritime infrastructure, which can help reverse years of slow growth in the sector. The package also includes a ₹20,000 crore maritime development fund and a shipbuilding development scheme with ₹19,989 crore outlay.

“ The Government of India’s renewed focus on shipbuilding and maritime infrastructure comes at a defining moment for the global industry. As supply chains are being reconfigured worldwide, building scale and capacity within India will be critical to long-term competitiveness,” said Captain Anand Jayaraman, executive officer (South Asia and Middle East Region), Mitsui O.S.K. Lines.

Industry support and global opportunities

Maersk described the cabinet decision as a progressive step that will further elevate the maritime sector in the country, creating long-term value for trade, industry, and the broader economy. 

The government stated that the decisions represent a significant step towards “Aatmanirbhar” shipping and aim to become one of the top 5 shipbuilding nations by 2047.

Chowgule said the government must consider granting infrastructure status to vessels with a length of 24 metres and a gross tonnage of 500. “At present this has been granted to Indian built vessels with over 1,500 gross tonnage. This excludes many vessels which are engaged in coastal shipping. Granting infrastructure status to coastal vessels will benefit the wider economy as it would help reduce overall logistics costs,” Chowgule said.

Published on September 24, 2025