India Targets Top 10 Global Shipbuilding Rank By 2030 With Mega Subsidy Push
The government is looking at capacity expansion of brownfield shipyards and setting up new greenfield shipyards.
India is setting sail for a major leap in global shipbuilding, aiming to break into the top 10 by 2030 and the top five by 2047. The government recently notified operational guidelines for two flagship initiatives — the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS) — together worth over Rs 44,700 crore.
Speaking exclusively to NDTV Profit, Vijay Kumar, shipping secretary, said the schemes are designed to strengthen domestic shipbuilding capacity and improve global competitiveness. They will support skilling, training, testing and R&D in the shipbuilding sector.
"Currently, India ranks 16th in shipbuilding worldwide. These measures will help us overcome cost disadvantages and scale up production," he said.
The subsidies are linked to local content with minimum 30% for eligibility, rising to 40% for full benefits.
The government is also looking at capacity expansion of brownfield shipyards and setting up new greenfield shipyards. "For the expansion of brownfield shipyards, we provide about 25% of assistance to expand the existing shipyards," he said.
The final strategy is to create a maritime development fund for equity investments in shipping operations to boost industry viability.
One in every two ships built in the world is made in China.
Easier Regulations, Targeted Incentives
The shipping secretary highlighted that the Draft Merchant Shipping Rules, 2026 aims to simplify regulations and integrate smaller operators.
The schemes are expected to increase India’s annual shipbuilding output from under 1 lakh GT to 4.5 million GT, generating 30 lakh jobs. Global shipping giants like CMA CGM and Maersk have already begun placing orders with Indian yards, Vijay Kumar said.
Additionally, ministries have aggregated demand for over 400 vessels worth Rs 2.2 lakh crore over the next decade, ensuring strong order visibility.
Among targeted incentives are shipbreaking credit note of up to 40% to promote circular economy and fleet renewal, interest subvention of up to 3% to bridge cost gaps with global players and higher subsidy rates for specialised vessels and green-fuel ships.
“The entire ecosystem from financing to technology and skilling is being addressed. This will make Indian shipyards globally competitive,” Kumar said.
