In a significant push to revitalize India's maritime capabilities, the government has announced schemes with an investment of over Rs 70,000 crore aimed at boosting the shipbuilding sector and reducing reliance on foreign vessels. These initiatives are designed to position India among the top 10 countries globally in shipbuilding and ship ownership, while also tripling the share of global port cargo handled by Indian ports.
Currently, India holds the 16th position worldwide in both shipbuilding and ship ownership, with only 7% of Indian-owned ships being constructed within the country. Data indicates a substantial decline in the proportion of export-import cargo carried by Indian ships, falling from 41% in FY1988 to a mere 5% in FY2023. This reliance on foreign shipping companies results in an annual outflow of approximately Rs 6 lakh crore, nearly equivalent to India's defense budget, according to Prime Minister Modi.
The newly announced schemes encompass three key areas:
These schemes are inspired by the success of major maritime nations like China and South Korea, which have achieved leading positions in shipbuilding through government-led financial support and cluster-based development. The initiatives are projected to generate nearly two crore direct and indirect jobs. The Shipbuilding Development Scheme (SDS) is particularly crucial as it aims to support the Indian shipbuilding industry in capacity and capability creation, while also providing credit risk covers, which are commonly available in other countries.
These schemes are set to receive Cabinet approval soon. Currently, only eight out of 61 shipyards in India are classified as large or very large.
Broader Initiatives for Maritime Development
The government's focus on maritime development extends beyond these new schemes. The Sagarmala Programme, launched in 2015, aims to promote port-led development in India by utilizing the country's extensive coastline and navigable waterways. With a total investment of Rs 5.79 lakh crore, the program includes 839 projects, of which 272, worth around Rs 1.41 lakh crore, have already been completed. The Sagarmala Programme has identified 279 projects worth ₹2.06 Lakh Crore under the Port Connectivity pillar, of these, 92 projects (₹58,031 Cr.) are completed, and 56 projects (₹67,975 Cr.) are under implementation. The remaining 131 projects (₹80,366 Cr.) are in various stages of development, focusing on improving multi-modal connectivity.
The Sagarmala Programme focuses on:
The Maritime India Vision 2030 aims to increase port capacity to 3,000 million metric tonnes per annum (MMTPA) by 2030, up from 1,600 MMTPA. India aims to be the top maritime nation by 2047, focusing on ports, cargo, ship ownership, shipbuilding, and reforms.
Challenges and Opportunities
Despite these efforts, India's maritime infrastructure faces several challenges, including outdated facilities, environmental concerns, and technological gaps. Many ports have shallow drafts, limiting their capacity for large vessels, and congestion and poor hinterland connectivity further reduce efficiency. Land acquisition delays also pose a major challenge for port and connectivity projects.
To address these challenges and fully realize its maritime potential, India needs to focus on:
By addressing these challenges and effectively implementing the various initiatives, India can strengthen its maritime power, reduce its dependence on foreign entities, and emerge as a major player in the global maritime landscape.
