Cabinet Approves ₹69,725 Crore Package to Revitalise Shipbuilding Sector
The Union Cabinet has approved a substantial ₹69,725 crore package to boost India's shipbuilding and maritime industry. The four-pillar plan aims to enhance domestic capacity, provide long-term financing through a new Maritime Development Fund, and implement policy reforms. The government projects the initiative will unlock significant shipbuilding capacity, create nearly 3 million jobs, attract ₹4.5 lakh crore in investment, and strengthen national security under the 'Aatmanirbhar Bharat' vision.
Unpacked:
India’s shipbuilding sector has historically lagged behind global leaders, holding less than 1% of the global market. The government aims to reduce reliance on foreign nations for maritime needs, strengthen national security, and capture a larger share of global trade through this strategic investment.
India’s shipbuilding industry has struggled with high infrastructure costs, outdated technology, a shortage of skilled workers, dependence on imported components, and higher costs compared to international competitors like China, South Korea, and Japan.
The Maritime Development Fund provides long-term, low-cost financing for shipbuilding and related infrastructure. The government will contribute 49%, with ports and private investors supplying the rest, aiming to address expensive financing and encourage private investment.
The initiative is expected to boost India’s global competitiveness, increase domestic production, and potentially raise its market share from less than 1%. However, success depends on addressing cost, technology, and workforce challenges to compete with established global leaders.