Central to the package is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 31, 2036, backed by a corpus of ₹247.36 billion.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a comprehensive package worth ₹697.25 billion to revitalise India’s shipbuilding and maritime ecosystem. The initiative adopts a four-pillar strategy to strengthen domestic capacity, improve long-term financing, promote shipyard development, enhance technical capabilities and skilling, and implement legal, taxation, and policy reforms to build resilient maritime infrastructure.
As part of this package, the Shipbuilding Financial Assistance Scheme (SBFAS) will be extended until March 31, 2036, with a corpus of ₹247.36 billion. It includes a Shipbreaking Credit Note allocation of ₹40.01 billion. A National Shipbuilding Mission will be set up to oversee implementation and ensure strategic alignment.
To address financing challenges, the Cabinet has approved the Maritime Development Fund (MDF) with a corpus of ₹250 billion. This includes a ₹200 billion Maritime Investment Fund, with 49 per cent government participation, and a ₹50 billion Interest Incentivisation Fund to reduce borrowing costs and improve project bankability.
The Shipbuilding Development Scheme (SbDS), with a budgetary outlay of ₹199.89 billion, aims to expand domestic shipbuilding capacity to 4.5 million gross tonnage annually. It will support mega shipbuilding clusters, infrastructure expansion, and the establishment of the India Ship Technology Centre under the Indian Maritime University, while also providing insurance and risk coverage for shipbuilding projects.
The package is expected to unlock 4.5 million gross tonnage of capacity, generate nearly three million jobs, and attract investments of approximately ₹4.5 trillion into the maritime sector. Beyond its economic footprint, the initiative will strengthen national, energy, and food security by enhancing resilience across supply chains and maritime routes. It also reinforces India’s strategic self-reliance and global competitiveness, advancing the vision of Aatmanirbhar Bharat.
India’s maritime legacy spans centuries of trade and seafaring. Today, the sector remains a cornerstone of the economy, supporting nearly 95 per cent of trade by volume and 70 per cent by value.