More and more shipowners are discovering India as a shipbuilding location. The country now wants to invest massively in the maritime industry, including shipping.
Carsten Rehder has already ordered newbuildings in India, as have Wilson, Vertom and Samskip. The shipbuilding sector on the subcontinent has recently experienced an upswing. And this growth is set to continue.
India is earmarking around $6 billion for the shipping sector in the financial year 2025-26. According to Finance Minister Nirmala Sitharaman, the main aim is to strengthen the country’s maritime infrastructure.
A new Maritime Development Fund (MDF) is to receive $3 billion alone. 49% of the sum will come from the state, with maritime companies contributing the rest. The remainder will be provided by the port authorities and the private sector.
The fund is intended to help achieve the government’s goal of increasing the proportion of ships sailing under the Indian flag by up to 20% by 2047. According to the government, it assumes that investments of up to USD 17 billion could be made by 2030.
The second investment focus is on the country’s shipyards. Shipbuilding clusters are to be established in five federal states. A construction capacity of up to 1.2 million GT per year is to be created at each of these locations. Existing shipyards are to receive around USD 700 million to modernize and automate their production. India aims to become one of the top 10 shipbuilding nations in the world by 2030. According to earlier information, the total capacity for 2025 is 69 million GT per year.
The budget for the Shipbuilding Financial Assistance Policy (SBFAP) will be increased by USD 2 billion. This financial instrument provides financial grants to Indian shipyards to offset operational cost disadvantages.
In addition, the existing Shipbuilding Financial Assistance Policy (SBF) will be revised, with Indian owners receiving financial benefits to scrap obsolete vessels and rejuvenate their fleets. Specifically, there is a credit of 40% of the scrap value.
