The Union Budget for 2026 has earmarked ₹616.88 crore for projects under the Sagarmala programme, the flagship port-led development initiative of the Ministry of Ports, Shipping and Waterways, for the financial year beginning April.
The allocation marks a decline from the ₹699 crore provided under the revised estimates for FY26 and is significantly lower than the ₹866 crore budgeted in 2025. In FY25, the actual expenditure under the Sagarmala scheme stood at ₹658.29 crore.
Despite the reduced outlay for Sagarmala, the Budget signals a strong thrust towards strengthening India’s maritime and shipbuilding ecosystem. A substantial ₹1,000 crore has been allocated to the Maritime Development Fund (MDF), which was approved by the Union Cabinet last year. The fund is aimed at addressing the financing needs of the maritime sector and supporting the growth of shipbuilding, ship repair and port infrastructure to enhance global competitiveness.
The Budget has also provided ₹515 crore for the Shipbuilding Financial Assistance Scheme (SBFAS) and the National Shipbuilding Mission. The allocation will be used to offer targeted financial assistance to Indian shipyards for ship construction. It also includes support in the form of shipbreaking credit notes for vessels scrapped at eligible Indian shipbreaking yards, which can be reimbursed against new shipbuilding orders placed with domestic shipyards.
In addition, an allocation of ₹250 crore has been made under the Shipbuilding Development Scheme (SbDS) for capacity and capability development and credit risk coverage. The funds will be used for grants-in-aid towards creating common infrastructure in new shipbuilding clusters, supporting brownfield capacity expansion at existing shipyards, mitigating financial risks, and providing insurance coverage such as pre- and post-shipment insurance and vendor default insurance. The allocation also covers capability development initiatives and the establishment of the India Ship Technology Centre (ISTC).
Overall, while funding for Sagarmala has seen a dip, the Budget underscores the government’s intent to accelerate India’s ambitions of becoming a global maritime and shipbuilding hub through focused financial support and institutional strengthening.