October14 , 2026

    India Launches Two Credit Risk Insurance Schemes to Boost Shipbuilding

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    The two policies were announced by Union Minister Sarbananda Sonowal at the 21st Maritime State Development Council meeting in Mumbai on October 13, 2026. The government says the measures will help shipyards manage payment defaults, project delays and financial risks associated with large, long-term shipbuilding contracts.

    The policies are:
    • Shipbuilding Project Credit Risk Insurance Policy (SbPCP): Developed by Export Credit Guarantee Corporation of India (ECGC), this policy covers export shipbuilding projects.

    • Business Credit Shield Policy–Shipbuilders (BCSPS): Developed by The New India Assurance Company, this policy provides protection for domestic shipbuilding projects.
    Under the initiative, the government will subsidise insurance premiums and provide financial support to insurers in the event of claims. The objective is to reduce the financial burden on shipyards and improve confidence among lenders and project stakeholders.

    Shipbuilding projects typically involve substantial upfront expenditure on materials, equipment, labour and infrastructure, while payments may be spread across several construction milestones. Delayed payments or buyer defaults can therefore place considerable pressure on shipyard cash flows.

    The new insurance products are intended to reduce these risks and make it easier for Indian shipbuilders to undertake larger projects and compete in international markets.

    The initiative forms part of India’s broader ₹69,725 crore shipbuilding and maritime development package, which aims to expand domestic shipbuilding capacity, improve access to finance and strengthen the country’s maritime manufacturing ecosystem.