Prime Minister Narendra Modi on Saturday raised concerns over India’s heavy reliance on foreign shipping companies, stating that the country pays nearly ₹6 lakh crore annually—equivalent to about $75 billion—for shipping services, an amount almost as large as India’s defence budget.
Addressing a public rally in Bhavnagar, Gujarat, Modi criticized decades of “misgovernance” by successive Congress-led governments for neglecting India’s indigenous shipbuilding capabilities despite its strong maritime legacy.
“The shipping sector is one of the major examples of the loss our nation had to bear. India was once a global maritime power and a major shipbuilding hub. Just 50 years ago, we used India-made ships. But instead of focusing on developing our shipbuilding industry, previous governments chose to pay rent to foreign ships. This led to the collapse of India’s shipbuilding ecosystem,” Modi said.
He further stressed the need for an Atmanirbhar (self-reliant) shipping sector to strengthen India’s economic sovereignty, asserting that the country has no shortage of capabilities. “Bharat mein samarthya ki koi kami nahi hai, lekin azadi ke baad, Congress ne Bharat ke har ek samarthya ko nazar-andaaz kiya,” he remarked.
Modi blamed the past regimes for entangling India in the “license-quota raj” and later promoting import dependence during the era of globalisation, which, according to him, led to widespread corruption and hindered India’s true potential.
Major Policy Shift to Revive Shipbuilding
The Prime Minister’s comments come in the wake of a major policy push under the Atmanirbhar Bharat initiative, aimed at reviving India’s domestic shipbuilding and port infrastructure sectors. A landmark decision was recently taken to grant infrastructure status to large ships, a move that experts believe will ease financing and promote investment in Indian shipbuilding.
Previously, only shipyards were eligible for such status, leaving shipowners struggling to access affordable loans. Now, large commercial vessels with a gross tonnage of 10,000 or more—under Indian ownership and flag—qualify for infrastructure status. Locally built smaller vessels with a gross tonnage of 1,500 or more are also included.
This change is expected to unlock cheaper, long-term financing by allowing vessels to be treated as collateral and by providing tax incentives. The policy shift is aligned with the government’s Maritime India Vision 2030, which identifies financing bottlenecks as a major hurdle for Indian shipping firms.
₹25,000 Crore Maritime Development Fund Announced
As part of the Union Budget 2025–26, the government has also set up a ₹25,000 crore Maritime Development Fund (MDF) to finance ship acquisitions directly. The fund is expected to attract ₹1.5 lakh crore in investments by 2030 and aims to increase the share of Indian-flagged ships in global cargo to 20% by 2047.
Currently, nearly 90% of India’s trade is carried by foreign vessels, contributing to the massive outflow of funds highlighted by the Prime Minister.
The latest policy measures mark a significant step toward rebuilding India’s maritime strength and reducing dependency on foreign shipping firms—key to the government’s long-term vision for a self-reliant India.
