India is strategically maneuvering to invigorate its shipbuilding industry through a series of ambitious schemes and supportive measures (sops). Recognizing the global shift towards domestic shipbuilding capabilities, after decades of dominance by China, South Korea, and Japan, India is determined to carve out a significant position in the global maritime sector. The government is implementing a multi-pronged approach encompassing financial assistance, policy reforms, and infrastructure development to achieve its goals.

The Indian government has committed substantial financial resources to boost the shipbuilding sector. A key initiative is the Maritime Development Fund (MDF), with a proposed outlay of ₹25,000 crore (approximately $2.9 billion). The government will contribute 49% of the fund, with the remaining portion expected from ports and private investors. The MDF aims to provide long-term, low-cost financing for shipbuilding and related infrastructure projects, addressing a critical need for the industry.

To further enhance the competitiveness of domestic shipyards, the Shipbuilding Financial Assistance Policy (SBFAP) has been revamped. SBFAP 2.0 involves a significantly enhanced allocation of ₹18,090 crore (approximately $2.2 billion) to provide direct financial subsidies to Indian shipyards. This aims to offset the operational cost disadvantages faced by local players, enabling them to compete more effectively for contracts. The initial SBFAP, launched in 2016, had a limited impact, with only 18 out of 39 registered shipyards availing its benefits. The enhanced version seeks to create a more robust and accessible framework.

Recognizing the importance of a circular economy, the government has introduced the Shipbreaking Credit Note Scheme. This initiative incentivizes ship recycling at Indian yards by issuing credit notes worth 40% of the scrap value. These credit notes can be used towards purchasing new, domestically built vessels, promoting both sustainable practices and local shipbuilding. Furthermore, the government has extended the exemption of import duties on inputs used for shipbuilding and shipbreaking for another 10 years, reducing production costs for domestic manufacturers.

Beyond financial incentives, the government is also focused on infrastructure development and policy reforms. Facilitating the creation of shipbuilding clusters with additional infrastructure facilities, skilling initiatives, and technological upgrades is a priority. Large ships of a specified size will be included in the infrastructure harmonized master list (HML), which would support the growth of India-flagged vessels and enable banks to provide INR-denominated loans. The government is also working to grant infrastructure status to the shipping sector, enabling companies to access funding on better terms and facilitating domestic ship acquisitions.

The Ministry of Ports, Shipping and Waterways (MoPSW) has set ambitious targets for the sector. Under the Maritime India Vision 2030, India aims to become one of the top 10 global shipbuilding hubs by 2030 and among the top five by 2047. The revised financial assistance policy aims to increase the share of Indian-built ships in the domestic fleet from 5% to 7% by 2030 and to a remarkable 69% by 2047. Vision 2047 further targets India's inclusion among the top five ship-owning nations with 100 million gross tonnage (GT) and aims to scale up shipbuilding capacity from 0.1 million to 4.5 million gross tonnes per annum (GTPA).

India's shipbuilding capabilities are also considered a strategic asset for its defense forces. Indian shipyards are focused on building indigenous warships, embracing advanced technologies, and reducing dependence on foreign military hardware. Recent successes include the delivery of Kalvari-class submarines (developed with French collaboration) and the production of frigates and corvettes.

To promote green shipping, the government has launched the Green Tug Transition Program (GTTP), aiming to transition to 50% zero-emission tug operations by 2030 and fully green operations by 2047. The Harbour Craft Green Transition Program has also been envisioned to encourage ports to adopt alternative fuels and electrification for their operations.

While India's current share of the global shipbuilding market remains small, ranking 22nd with less than 1% market share, the government's proactive measures and strategic investments indicate a strong commitment to transforming the sector. By addressing cost disadvantages, promoting technological advancements, and fostering a supportive ecosystem, India is striving to become a major player in the global shipbuilding industry.