The government is preparing to roll out a ₹70,000-crore financial package aimed at transforming India’s shipbuilding, repair, and port infrastructure, with the Union Cabinet expected to take up the proposal by mid-September. The ambitious plan seeks to attract global and domestic investment into the maritime sector while positioning India as a competitive shipbuilding hub.
According to people familiar with the development, the package will be anchored around three major initiatives. About ₹20,000 crore has been earmarked for creating shipping clusters across coastal states such as Andhra Pradesh, Odisha, Tamil Nadu, Gujarat, and Maharashtra. These clusters will be developed through special purpose vehicles (SPVs) and will offer industry-friendly incentives, including a ten-year rent holiday and state-supported infrastructure such as dredging, breakwaters, and road connectivity.
Another ₹20,000 crore will be allocated to the new Ship Building Financial Assistance (SBFA) scheme, which will extend direct subsidies to Indian shipyards for a further ten years beginning April 2026. The measure is designed to help offset the cost disadvantages faced by domestic players when competing with established global shipbuilders.
The largest share of the package, between ₹25,000 crore and ₹30,000 crore, will be channelled into a Maritime Development Fund (MDF). The fund will follow a blended financing model, with 49% concessional government capital and 51% commercial investment from financial institutions, sovereign funds, and global lenders. It is expected to catalyse more than ₹1.3 trillion in investments by 2030 and generate as many as 1.1 million jobs.
The initiative is part of India’s long-term maritime strategy under the Atmanirbhar Bharat vision, which aims to raise the share of Indian-built ships to 7% by 2030 and nearly 70% by 2047. Alongside financial measures, the government has also introduced sweeping legislative reforms, including the Merchant Shipping Bill, Coastal Shipping Bill, Carriage of Goods Bill, and a new Indian Ports Bill to replace outdated regulations.
Officials said the package is intended to not only boost domestic shipbuilding and repairs but also to strengthen India’s position in global trade. With a projected investment requirement of nearly $900 billion in the maritime sector by 2047, the government’s move is being viewed as a critical step towards creating a world-class, future-ready maritime ecosystem.