The Indian government is preparing to grant infrastructure status to the shipping industry, with an official notification expected within two weeks.
This decision is aimed at providing shipping companies access to long-term, low-cost financing, which will help them buy more ships from Indian shipyards and expand vessel ownership.
Currently, India stands at 18th place in global ship ownership and 22nd in shipbuilding. The infrastructure tag is expected to close the competitive gap with global players, as Indian firms often face higher funding costs and shorter repayment terms compared to foreign shipping companies.
Instead of linking infrastructure status to project value, the government plans to apply a vessel-size threshold. Ships measuring 24 meters or longer are expected to qualify.
Aligning loan repayment schedules with the 12–15 year lifespan of ships will further ease financial pressure on companies.
According to Anil Devli, CEO of the Indian National Shipowners’ Association (INSA), this move will allow Indian shipowners to expand both coastal and international fleets.
By accessing cheaper, longer-term credit, companies can order more ships from domestic builders, strengthening India’s maritime ecosystem.
This initiative is also in line with the government’s ambition to make India a top-five global player in shipbuilding and shipping by 2047.
It will complement existing schemes such as the Ship Building Financial Assistance Policy, the proposed Rs 25,000-crore Maritime Development Fund, and new incentives to encourage green vessel construction.
Overall, granting infrastructure status to shipping is a strategic step to boost domestic shipbuilding, improve competitiveness, and push India toward greater self-reliance in the maritime sector.