The Ministry of Ports, Shipping and Waterways this week announced a massive move to breathe new life into its shipbuilding industry—and the stakes are high for every Indian. The government’s fresh Rs 69,725 crore package isn’t just about building more ships. It is well-timed.
It’s about aiming for a spot at the global top table and keeping more of our hard-earned money at home, especially in turbulent times of the Trump tariffs.
But as exciting as it sounds, success depends entirely on how quickly and efficiently things roll out from policy to reality.
Timing is everything
Right now, the global shipbuilding market is in flux. International powerhouses like China, South Korea, and Japan are so busy with orders that they’re fully booked for years.
That backlog has opened a rare window for countries like India to jump in and grab a slice of the business.
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In fact, India’s target is bold: grow from a meagre 0.07 per cent market share to 5 per cent of global shipbuilding by 2030. It’s not just talk—there’s real urgency because if we as a nation wait too long, that window will close as quickly as it opened.
The centre’s four pillars of maritime
Creating the money flow
The Rs. 24,736 crore Shipbuilding Financial Assistance Scheme isn’t just paperwork. It’s set to extend all the way to 2036, supporting shipyards and ship recycling with actual reimbursements for shipbreaking—putting cash back into Indian hands instead of foreign ones.
But paperwork alone isn’t enough. As of now, slow government processes mean that some promised funds have yet to actuall reach the people who need them most.
Fixing the financing
Here’s something every businessperson knows: Without affordable loans, no industry can thrive.
India’s Maritime Development Fund, pegged at Rs 25,000 crore, aims to change that, making loans for shipping projects competitive with those in China and Korea.
Yet, critics point out that most money sits idle. Real, usable funding has been held up by government red tape and confusion around who makes the final calls and how the money should be distributed.
Growing shipbuilding capacity
Shipbuilding is all about big infrastructure. The Rs. 19,989 crore earmarked for new shipyards and upgrades means more jobs and fatter paychecks for everyday workers, from welders to tech specialists.
Cochin Shipyard’s tie-up with Korean giants shows that foreign expertise could speed things along.
Making policies that work for maritime
The government’s decision to give “infrastructure status” to large ships brings cheap loans and investment to Indian shipbuilders.
It’s a game-changer, but only if banks and ministries tweak the rules fast enough. Right now, every day, Indians still see foreign ships hauling 95 per cent of our trade. If these policies work as intended, we’ll see more Indian ships—flying the tricolour—handling business, creating local jobs, and keeping money at home.
“With the Rs 25,000 crore Maritime Development Fund (MDF), our government has incentivised shipbuilding, given infrastructure status to large vessels, and tonnage tax benefits for inland vessels,” Union Minister for Ports, Shipping and Waterways (MoPSW) Sarbananda Sonowal announced at THE WEEK Maritime Conclave 2025 last week.
Roadblocks ahead
The Centre, however, will have to ensure that the money does not get stuck in bureaucracy, and the policies do not lag behind industry needs. Moreover, workers need new skills for new technology. This means changes at the ground level, that too, fast.
Why it matters to India
If the Centre’s Maritime plan works out, every day Indians will see real benefits: more jobs, better salaries, and less reliance on foreign shipping.
Every rupee spent on Indian ships is a rupee that stays in India, fuelling everything from small businesses to big industries.