The Indian government has renewed its focus on boosting the shipbuilding sector, which has previously struggled with underutilized support funds. In the Union Budget for 2025, Union Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, introduced a Maritime Development Fund (MDF) of Rs. 25,000 crore (US$ 2.87 billion) to promote infrastructure and competitiveness within the maritime industry. The government also launched a Shipbuilding Financial Assistance Policy, offering shipbuilders easier access to infrastructure credit. Furthermore, customs duty exemptions for raw materials and parts for shipbuilding have been extended for another decade. Capital gains tax exemptions will be provided to non-residents investing in ship leasing through Gujarat International Finance Tec-City (GIFT) city units. These initiatives aim to address financing challenges, foster growth, and position India among the top global shipbuilding nations.
The government aims to enhance India’s maritime capabilities by expanding its fleet and supporting the shipbuilding ecosystem. In addition to financial support, India plans to establish a new shipping company with state-run oil, gas, and fertilizer companies and the Shipping Corporation of India to reduce reliance on foreign shipping companies. The total number of Indian vessels remains small, at just 2.6% of the global fleet. However, the government aims to increase this share significantly in the next decade. The efforts include an Rs. 1,624 crore (US$ 186.5 million) subsidy over five years to encourage Indian companies to compete in global tenders. Despite these challenges, the initiatives demonstrate a long-term vision to elevate India's shipbuilding sector.
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