India has announced its most ambitious maritime push yet, approving an $8 billion package designed to propel the country into the world’s top shipbuilding nations.
The Union Cabinet this week cleared the program aimed at lifting India into the global top ten shipbuilders by 2030 and top five by 2047. Currently ranked 16th with capacity just over 0.1m gross tonnes, India plans to create 4.5m gt of new capacity in the near term, potentially doubling that in a few years. Targets include 2,500 new vessels, 250m tonnes of additional port capacity, 3 million jobs, and $54 billion in investment.
The measures feature financial incentives for newbuilds, subsidies for loans, cluster development schemes, and long-awaited reforms to arbitration and dispute resolution. A notable incentive is a 40% credit note on vessels scrapped at Indian yards, intended to boost domestic recycling and support a circular economy.
In parallel, the Shipping Corporation of India (SCI) has signed a joint venture agreement with state-run oil companies Indian Oil, Bharat Petroleum, and Hindustan Petroleum. The venture will purchase domestically built vessels to reduce reliance on foreign-flagged ships for crude oil and fuel imports – a move expected to save up to $80 billion annually. Under the plan, SCI will provide technical and operational expertise, while the oil majors will back the venture with long-term shipping contracts.
Officials described the initiative as part of the government’s Aatmanirbhar Bharat (self-reliant India) agenda, intended to strengthen the nation’s shipping fleet and bring the sector up to “global benchmarks.”
