India’s maritime sector needs stronger domestic mechanisms for long-term financing to sustain its growth ambitions, according to industry representatives attending the India Maritime Week 2025.
Ship owners and port developers expressed concern over the limited availability of affordable, long-tenure loans for vessel acquisition and port infrastructure projects. While banks remain the primary source of funding, high interest rates and short repayment periods have emerged as key challenges.
“There are no viable long-term financing options readily available for port infrastructure development,” said the finance head of a leading private port terminal operator, requesting anonymity. “Even infrastructure bonds tend to mature in 15 years, whereas ports require 30–50-year debt instruments to match project lifecycles.”
The Maritime India Vision 2030 estimates an investment requirement of ₹3–3.5 lakh crore across ports, shipping, and inland waterways. To address this, the Centre has announced a ₹25,000-crore Maritime Development Fund (MDF), aimed at providing easier access to capital for the sector. The National Bank for Financing Infrastructure and Development (NaBFID), set up in 2021 as a development finance institution, is likely to operationalise the fund. Guidelines are expected to be issued in the coming months, a senior government official said.
In parallel, the government is expanding institutional participation in maritime financing. The Sagarmala Finance Corporation (SMFC) and Housing and Urban Development Corporation (Hudco) have entered into an agreement to finance up to ₹80,000 crore over the next decade for eligible public and private projects under the Sagarmala programme. Hudco has also signed four MoUs with major port authorities to fund infrastructure projects across India.
To further ease capital constraints, the government recently permitted the use of large vessels as loan collateral — a move expected to unlock new credit avenues for shipping companies.
However, industry voices caution that banks remain reluctant to extend credit for vessel purchases despite these policy interventions. “Even with the government’s push, bankers tend to shy away from lending for ship acquisitions,” noted a representative of a leading Indian shipping firm.
As India positions itself to become a global maritime hub, industry participants believe the evolution of sustainable long-term financing models will be essential to realize the sector’s full potential.