Shipping sector eyes policy continuity, connectivity boost in Budget 2026

Shipping stocks in focus ahead of Budget 2026

India’s shipping and ports sector enters Union Budget 2026–27 at a time when global trade flows are being reshaped by tariff wars, geopolitical tensions and supply-chain fragmentation. With nearly 95 percent of India’s trade by volume moving through sea routes, the sector is increasingly seen as strategic infrastructure rather than just a logistics enabler.

Experts believe Budget 2026 is likely to focus on policy continuity and execution as the government looks to strengthen maritime capacity, lower logistics costs and support export competitiveness.

Amit Anwani, vice-president of equity research at Prabhudas Lilladher, expects a healthier allocation for the sector this year, aided by a favourable base effect, with continued emphasis on shipping, ports and related infrastructure. Stocks such as Mazagaon Dock, SCI, Concor, and Adani Ports will be in focus.

Big Trends

Ports as strategic assets: Port handling capacity has crossed 2,600 million tonnes per annum, while turnaround times at major ports have improved sharply due to mechanisation and digitisation.

Push on shipbuilding: The government has approved a Rs 69,725 crore package to boost shipbuilding, targeting a top-10 global ranking by 2030. The focus is on scaling domestic capacity, ship repair clusters and global partnerships to move up the value chain.

Port-led development: Greater emphasis is being placed on port-linked roads, rail and logistics parks under Sagarmala and the National Logistics Policy to improve end-to-end efficiency.

Major Issues / Challenges

High logistics costs: Despite capacity expansion, India’s logistics costs remain higher than global peers, impacting export competitiveness.

Low fleet share: Indian-flagged vessels still carry a limited share of the country’s trade, increasing dependence on foreign shipping.

Long-gestation funding needs: Ports and shipbuilding projects require long-term, low-cost financing, which remains a constraint for private investment.

What Happened in the Last Budget

#1 Continued funding under the Sagarmala programme

#2 Support for port modernisation and multimodal connectivity

#3 Passage of the Indian Ports Bill, 2025 to modernise port governance

#4 Policy push for shipbuilding, ship repair and green shipping initiatives

What the Industry Expects from Budget 2026

Low-cost, long-term financing: Industry participants are seeking access to stable financing to support large port and shipbuilding projects with long payback periods.

Execution focus: Faster customs clearance, improved port logistics efficiency and better last-mile connectivity remain key expectations.

Support for shipbuilding and coastal shipping: Continued incentives for domestic shipbuilding, repair facilities and Indian-flagged vessels to reduce overseas dependence.