Economic Survey says shipbuilding vital to strategic resilience push

The scheme envisages establishment of an India Ship Technology Centre to help develop domestic capabilities in shipbuilding design, manpower training, research and development, and coordination of testing facilities.

• India approves Rs 69,725-crore package to boost shipbuilding and maritime sector
• Shipbuilding aid scheme extended to March 2036 with Rs 24,736 crore fund.
• Rs 25,000 crore Maritime Fund to boost investment and private capital

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The Economy Survey positions the shipbuilding industry alongside critical minerals and semiconductors, identifying it as a core pillar of India’s strategic resilience and self-sufficiency agenda.

The survey, released on January 29, said the Rs 69,725-crore package approved in September 2025 aims to revitalise shipbuilding and maritime ecosystem.

“... the government has been systematically strengthening national resilience by investing in achieving self-sufficiency in critical minerals and semiconductors, as well as supporting the shipbuilding industry through sustained and persistent efforts,” the Economic Survey said.

The package adopted a four-pillar approach aimed at developing a “globally competitive, technologically advanced and sustainable maritime sector”, reflecting a policy shift that treats shipbuilding as a strategic industrial capability rather than a niche maritime activity.

The survey frames the shipbuilding package as a structural intervention rather than a short-term stimulus, emphaising the government’s intent to build scale, technological depth and financial resilience in a sector viewed as critical to trade, energy security and national strategy.

Financial assistance scheme till March 2036

A key component of the framework is the Shipbuilding Financial Assistance Scheme (SBFAS), which has a corpus of Rs 24,736 crore and will remain valid until March 31, 2036. The survey said the scheme provides structured incentives for shipbuilding within India, addressing cost disadvantages faced by domestic yards in global markets dominated by a few large players.

SBFAS also includes a shipbreaking credit note of Rs 4,001 crore, aimed at promoting environmentally responsible recycling and supporting green shipbuilding practices. This aligns the shipbuilding push with India’s broader environmental and sustainability objectives, particularly as global shipping standards tighten around emissions and recycling norms.

Dedicated maritime financing architecture

To address long-standing financing constraints in the sector, the government has approved a Maritime Development Fund (MDF) of Rs 25,000 crore. According to the survey, the framework is intended to strengthen long-term sectoral financing, attract investment and promote public-private partnerships across shipbuilding and allied maritime activities.

The MDF comprises a Maritime Investment Fund of Rs 20,000 crore, with 49 percent participation from the Government of India, and an Interest Incentivisation Fund of Rs 5,000 crore designed to lower financing costs and improve project viability. The structure is aimed at crowding in private capital while reducing risk for lenders in a capital-intensive sector with long gestation periods, the survey said.

Scaling capacity and technology depth

The Shipbuilding Development Scheme (SbDS), with an outlay of Rs 19,989 crore, seeks to expand India’s shipbuilding capacity to 4.5 million gross tonnage annually. The survey said the scheme supports the development of greenfield mega shipbuilding clusters, modernisation of existing shipyards, and the provision of risk and insurance support for shipbuilding projects.

It also envisages the establishment of an India Ship Technology Centre to help develop domestic capabilities in shipbuilding design, manpower training, research and development, and coordination of testing facilities.

As part of the broader reform package, large ships above a specified size were included in the Infrastructure Harmonised Master List in September 2025. The move is intended to ease access to long-term finance by allowing eligible projects to tap infrastructure-linked funding channels, the Economic Survey said.