In a major push to enhance India’s maritime infrastructure and construction sector, Finance Minister Nirmala Sitharaman announced the creation of a ₹250 billion ($2.9 billion) Maritime Development Fund to provide long-term financing for the country’s shipbuilding and repair industry. The announcement, made during the Union Budget presentation, aligns with Prime Minister Narendra Modi’s vision to make India a developed nation by 2047.
The government will contribute 49% of the fund, while the remaining amount will be mobilized from ports and private sector investors. This move aims to modernize India’s shipping industry, which has struggled to keep up with the country’s growing trade demands, including energy imports and refined oil exports.
Additionally, the government plans to establish a new shipping company in collaboration with oil refiners and Shipping Corporation of India (SCI) to expand the nation’s fleet and reduce reliance on foreign carriers. Following the announcement, SCI shares surged 3.8%.
To further strengthen the sector, shipbuilding clusters will be developed with improved infrastructure, skill training, and advanced technology. Moreover, the government will introduce credit incentives for shipbreaking in Indian yards to encourage the dismantling of old vessels and the construction of new ones, ensuring a more sustainable maritime industry.
