Cabinet Approves ₹69,725 Crore Package to Revive India’s Shipbuilding and Maritime Sector
SDG 9: Industry, Innovation and Infrastructure | SDG 14: Life Below Water
Institutions: Ministry of Ports, Shipping & Waterways | Ministry of Finance
On 24 September 2025, the Union Cabinet approved a ₹69,725 crore package aimed at revitalising India’s shipbuilding and maritime ecosystem. The package follows a four-pillar approach: (1) strengthen domestic shipbuilding capacity, (2) provide long-term maritime financing, (3) support infrastructure development of shipyards, and (4) reform legal, tax, and policy frameworks. The Shipbuilding Financial Assistance Scheme (SBFAS) is being extended till 31 March 2036 with a corpus of ₹24,736 crore, including a Shipbreaking Credit Note of ₹4,001 crore. A Maritime Development Fund (MDF) is instituted, with a Maritime Investment Fund of ₹20,000 crore and an Interest Incentivization Fund of ₹5,000 crore to reduce debt costs. A Shipbuilding Development Scheme (SbDS) is being launched with an outlay of ₹19,989 crore to build up to 4.5 million gross tonnage capacity. The package is projected to unlock ~30 lakh jobs and attract an estimated ₹4.5 lakh crore in investment, reinforcing India’s trade, energy, and strategic resilience.
This initiative is significant for India’s long-term ambitions in maritime sovereignty, trade resilience, and industrial capabilities. Strengthening domestic shipbuilding reduces dependency on foreign yards, supports “Make in India” heavy engineering capability, and helps secure critical supply chains for energy, defence, and import/export logistics. The financing instruments (MDF, investment fund, interest subsidy) are essential to mobilise private capital in a sector with long gestation. From a strategic perspective, enhancing shipbuilding capacity supports maritime security, port development, and regional influence in the Indo-Pacific.
Relevant Question for Policy Stakeholders
How should India ensure that this capital-intensive maritime package also translates into regional shipyard upgrades, skilled workforce development, and sustainability in green shipbuilding technologies?
Follow the full news here: Comprehensive 4-Pillar Approach to Strengthen Shipbuilding and Maritime Sector