The Union Cabinet has cleared a landmark package worth ₹69,725 crore aimed at reviving India’s shipbuilding and maritime sector, a move that the government describes as a strategic push to position India as a global hub in shipping and naval construction, in line with the larger Viksit Bharat 2047 vision.

Union Minister for Railways, IT, and I&B Ashwini Vaishnaw, while announcing the decision, underlined the historical importance of India’s maritime tradition, recalling that until the 18th century, Indian ship designs were among the most advanced in the world, attracting global buyers. He stressed that with maritime transport already carrying 95% of India’s trade by volume and 65% by value, bolstering shipbuilding is not just an economic necessity but a strategic imperative.

The revival plan has been articulated around a four-pillar framework intended to reform policy, ease financing, and enhance infrastructure capacity. The first pillar is the Shipbuilding Financial Assistance Scheme, for which ₹24,736 crore has been allocated.

The scheme, extended until 31 March 2036, offers incentives to boost indigenous shipbuilding and includes a unique ‘Shipbreaking Credit Note’ component with a ₹4,001 crore allocation.

This incentive is expected to strengthen recycling and lifecycle management practices. To ensure coordination and execution, a National Shipbuilding Mission will be set up with the mandate of harmonizing procurement across stakeholders, ensuring demand visibility for shipyards, and fostering global collaborations.

The second pillar involves the establishment of a Maritime Development Fund with a corpus of ₹25,000 crore. This fund will focus on making finance cheaper and more accessible for maritime players, particularly in creating a viable ecosystem for Indian tonnage (locally registered ships) and critical infrastructure such as modern shipyards, repair workshops, and port-linked clusters.

By easing equity financing and ensuring long-term investments, this measure is expected to diminish India’s reliance on foreign-flagged vessels and ensure greater competitiveness in international waters.

The Shipbuilding Development Scheme, the third pillar, carries a budget of ₹19,989 crore. Its objectives include the development of new greenfield shipbuilding clusters while expanding and modernizing existing brownfield facilities.

The government envisions creating globally competitive hubs capable of attracting both domestic demand and large foreign orders. These specialised hubs are expected to tap into the surge in demand for energy-efficient and technologically advanced vessels globally, as the shipping industry transitions to greener practices.

The fourth pillar targets legal, policy, and structural reforms. Key maritime legislations such as the Merchant Shipping Act, the Carriage of Goods by Sea Act, and the Indian Ports Act will undergo amendments to align with modern global standards. This regulatory overhaul is designed to improve ease of business in the Indian maritime sector, raise safety and environmental compliance, and integrate India more seamlessly with international shipping frameworks.

The government projects that successful implementation of this comprehensive package could enhance indigenous shipbuilding capacity to 4.5 million gross tonnage and total output to 8.2 million gross tonnage.

Over 2,500 additional vessels may be built under this push, while port capacity is projected to increase by an additional 250 million tonnes per annum. In terms of economic impact, the reforms are expected to generate around 30 lakh jobs and attract investments worth nearly ₹4.5 lakh crore, thereby placing the maritime sector at the forefront of India’s industrial and strategic growth.

Beyond the maritime package, the Cabinet also approved decisions worth another ₹94,916 crore. These included transport and infrastructure projects such as doubling a railway line at an estimated cost of ₹2,192 crore and constructing a four-lane road in Bihar with an investment of ₹3,822.31 crore. 

Additionally, a productivity-linked bonus for 78 days was approved for over 10.9 lakh railway employees, amounting to ₹1,865.68 crore. Other significant allocations include ₹2,277.39 crore for a scheme to boost scientific research and human resource development, and ₹15,034.50 crore for expanding the capacity of undergraduate and postgraduate medical education.

In parallel with the Cabinet approvals, Minister Vaishnaw drew attention to the government’s preference for indigenous solutions in digital infrastructure. At the Cabinet briefing, the minister pointed out that his official presentation was made using Chennai-based enterprise solutions provider Zoho, rather than Microsoft PowerPoint.

He later posted on X urging citizens to “Switch to Swadeshi,” highlighting the Modi government’s broader push for self-reliance. While the National Informatics Centre (NIC) will continue to manage platforms and data, Zoho has been roped in to provide office productivity tools due to its compatibility and advanced features.

This move has sparked debate, with some MPs like Communist MP John Brittas expressing concerns over NIC’s diminishing role, given its decades of service in managing government email and digital systems. Importantly, in 2023, the government had already selected Zoho to handle key email and office products, marking the first instance of a private contractor playing a major role in official digital services.

Taken together, the Cabinet’s decisions represent a significant step forward both in revitalizing physical maritime and transport infrastructure and in reshaping India’s digital ecosystem. The shipbuilding revival package, coupled with infrastructure and research-related allocations, underscores the dual strategy of strengthening India’s heavy industry while also modernizing governance tools with indigenous solutions.

This comprehensive set of reforms aligns with the broader strategic goal of reinforcing India’s economic sovereignty, maritime resilience, and industrial leadership on the path to becoming a developed nation by 2047.

Agencies