India Approves Rs 70,000 Crore Maritime Package to Boost Shipbuilding, Reduce Dependence on Imports
New Delhi, 25th September 2025: In a major move to strengthen India’s shipbuilding capabilities and reduce reliance on foreign vessels, the government on Wednesday approved a comprehensive Rs 70,000 crore package aimed at transforming the maritime sector. Currently, global shipbuilding is dominated by China, South Korea, and Japan, but officials say this initiative positions India to emerge as a major player.
Announcing the decision, Union Minister for Information & Broadcasting Ashwini Vaishnaw highlighted the need for strong support to build a robust domestic industry. “Shipbuilding requires deep capital investment. Historically, countries that succeeded in sustaining their shipbuilding sectors provided substantial backing to the industry. This package is designed to do exactly that for India,” he said.
The package follows a four-pillar approach: strengthening domestic shipbuilding capacity, improving long-term financing options, promoting greenfield and brownfield shipyard development, and enhancing technical expertise and workforce skills.
The plan includes three major schemes:
Shipbuilding Assistance Scheme – Rs 24,736 crore
Maritime Development Fund – Rs 25,000 crore
Shipbuilding Development Scheme – Rs 20,000 crore
Together, these initiatives are expected to attract Rs 4.5 lakh crore in investment and support the construction of over 2,500 vessels. The government hopes this will not only encourage global investment but also reduce India’s current dependence on imported ships, which stands at roughly 95%.
Prime Minister Narendra Modi described the package as a “transformative push for maritime self-reliance,” emphasizing that it will generate jobs, expand Gross Tonnage capacity by 4.5 million, and make India a hub for shipbuilding investment.
Union Shipping Minister Sarbananda Sonowal underscored the strategic importance of the move, stating, “This initiative is crucial for India’s strategic independence. It will strengthen supply chains, enhance maritime capabilities, and reinforce India’s geopolitical resilience, advancing the vision of Aatmanirbhar Bharat through a developed maritime sector.”
Under the package, the Shipbuilding Financial Assistance Scheme will be extended until March 2036. Vessels costing less than Rs 100 crore will receive 15% financial assistance, those above Rs 100 crore 20%, and green or hybrid vessels 25%. Projects must achieve at least 30% domestic value addition to qualify. The scheme also introduces a “ship-breaking credit note,” enabling shipowners to claim 40% of a dismantled vessel’s scrap value at an Indian yard toward building a new ship.
