India has approved a comprehensive financial package worth ₹69,725 crore to transform the domestic shipbuilding and maritime infrastructure sector, announced PIB.

This package follows the measures announced under the Union Budget 2025–26 and is structured around a four‑pillar strategy aimed at revitalising shipbuilding capacity, maritime financing, and skilling.

The initiative is designed to position India as a competitive global shipbuilding force in line with the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.

The Shipbuilding Financial Assistance Scheme (SBFAS), which extends the earlier Shipbuilding Financial Assistance Policy (SBFAP), has been allocated ₹24,736 crore. This scheme is intended to address the cost disadvantages faced by Indian shipyards compared to global competitors.

Alongside this, a Maritime Development Fund (MDF) with a corpus of ₹25,000 crore has been created to provide long‑term financing support. The MDF comprises a Maritime Investment Fund (MIF) of ₹20,000 crore and an Interest Incentivisation Fund (IIF) of ₹5,000 crore. SBI Ventures Limited was appointed as the Fund Manager for MIF on 26 May 2026.

The Shipbuilding Development Scheme (SbDS) carries an outlay of ₹19,989 crore. Its objective is to expand India’s shipbuilding output capacity to 4.5 million Gross Tonnage annually by establishing greenfield shipbuilding clusters and expanding existing shipyards.

In‑principle approvals have already been granted for three greenfield clusters in Andhra Pradesh, Gujarat, and Tamil Nadu. SbDS also supports the development of common maritime and land‑based infrastructure. Additionally, the India Ship Technology Centre (ISTC) has been established as a Section 8 company to promote ship design, R&D, skill development, and software capabilities.

Policy reforms have been introduced to strengthen the industry. On 19 September 2025, the government notified infrastructure status for Indian‑flagged commercial vessels of 10,000 GT or above, and for vessels constructed in India of 1,500 GT or above.

Demand aggregation has been implemented through a fleet acquisition plan of over 400 vessels, providing long‑term order visibility to Indian shipyards. Scheme guidelines for SBFAS were issued on 26 December 2025, while those for MDF were released on 20 February 2026.

Skilling initiatives have been prioritised. Eleven shipyards have signed MoUs with 34 ITIs across eight coastal states to implement on‑the‑job training programs. A 150‑hour OJT model has already trained 727 trainees. Training of Trainers programs have been conducted at two ITIs in West Bengal by the Centre of Excellence in Maritime and Shipbuilding.

A preliminary Skill Gap Study has been completed across nine shipyards. Over the past three years, 92,697 candidates have been trained, skilled, or upskilled.

A Plan of Implementation has also been signed between the Ministry of Ports, Shipping and Waterways and the Korea International Cooperation Agency for a skill development project in shipbuilding.

India’s shipbuilding output has shown significant growth. According to the latest UNCTAD report, output rose by 41% from 40,923 GT in 2024 to 57,637 GT in 2025. The comprehensive package has instilled confidence in Indian shipyards, leading to several large commercial and export shipbuilding orders.

In the past two years, in‑principle approvals for financial assistance under SBFAP and SBFAS have been granted for contracts worth ₹15,234 crore. Under SbDS, approvals have been given to four shipyards for brownfield capacity augmentation projects valued at over ₹2,500 crore. With a high employment multiplier of 6.4, these developments are expected to generate substantial direct and indirect employment opportunities.

This information was provided by the Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, in a written reply to the Lok Sabha.

PIB