In a major policy move aimed at boosting India’s shipbuilding and maritime ambitions, the Ministry of Finance has granted infrastructure status to large Indian-owned and flagged commercial ships, marking a significant step toward making India a global force in the shipping industry.
According to an official notification issued Friday, commercial ships that are either:
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Indian-owned and flagged with a gross tonnage (GT) of 10,000 or more, or
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Indian-built, owned, and flagged with a GT of 1,500 or more,
will now be included in the infrastructure harmonised master list — a move that will enable fleet owners to access long-term, low-cost funding.
The announcement comes a day ahead of Prime Minister Narendra Modi’s visit to Gujarat’s Bhavnagar, where he is expected to officially launch India’s long-term plan to transform itself into a global shipbuilding hub, backed by initiatives announced in the Union Budget 2025.
“This is a long-awaited boost for Indian ship owners,” said Finance Minister Nirmala Sitharaman, who had first announced the plan during her budget speech on February 1. The ministries of finance and ports, shipping, and waterways have since been working together to finalize the criteria.
Industry experts welcomed the move, stressing the critical role of financing in the capital-intensive shipbuilding sector.
“India needs to empower banks to finance ships, just like China did years ago,” said Dr. Ranjan Varghese, CEO of Hong Kong-based Steel Ships. “Without affordable finance, no one will build ships. The government should actively support Indian ship owners with loans and mandate domestic shipbuilding.”
According to government estimates, India will require approximately $18 billion by 2047 to develop its shipbuilding, ship repair, and related industries. An additional $388 billion will be needed to expand India’s shipping tonnage, along with $260 billion to develop green shipping capacity.
Despite having only 0.06% of the global shipbuilding market and ranking 16th globally, India has set ambitious targets: entering the top 10 by 2030 and the top 5 by 2047 in shipbuilding, while also becoming a leading ship-owning nation.
This policy push is seen as a cornerstone of India’s maritime vision under the broader Atmanirbhar Bharat initiative, aiming to reduce reliance on foreign ships and boost domestic capabilities in line with global sustainability and trade trends.
