Cabinet Approves ₹69,725 Crore Package to Build Shipbuilding and Maritime Sector

New Delhi, September 24, 2025 — In a first-of-its-kind move to boost India’s maritime strength, the Union Cabinet approved a ₹69,725 crore package to overhaul the shipbuilding sector. The decision is to boost indigenous capacity, modernize shipyards, and position India as a more assertive force in the global maritime world.

Four-Pillar Strategy for Growth

The scheme is structured on four wide pillars. First, it attempts to boost domestic shipbuilding capacity so that Indian shipyards can compete globally. Second, it will provide long-term funding assistance to the industry. Third, the scheme targets the establishment of greenfield and brownfield shipyards in the nation. Finally, the scheme focuses on enhancing technical competence and skilling, together with legal, taxation, and policy reforms for ensuring a good business climate.

Information and Broadcasting Minister Ashwini Vaishnaw stated the action demonstrates the government’s commitment to developing a global competitive maritime infrastructure, which will be able to support economic growth as well as employment opportunities.

Breakdown of the Package

The majority of the package will be initiated through three special schemes. Shipbuilding Financial Assistance Scheme (SBFAS), which is currently extended until March 31, 2036, has a corpus of ₹24,736 crore, with a shipbreaking credit of the value ₹4,001 crore. The scheme will be managed by a newly created National Shipbuilding Mission.

The second one, the ₹25,000 crore corpus Maritime Development Fund (MDF), will provide long-term funding for projects to develop the maritime industry.

In addition to that, the Shipbuilding Development Scheme with a budgetary support of ₹19,989 crore will finance infrastructure development and industry growth in general directly.

Strategic Impact

Besides industrial development, the package will also generate employment, stimulate technical capability, and support sustainable shipbuilding. The package is strategically important to further India’s indigenous development and international recognition in maritime business and naval infrastructure.

The timing is such that the international shipping industry is undergoing a transition, and India is seeking to establish itself as a shipbuilding and maritime services hub.

REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2170575

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