India’s Maritime Vision: A $2.9 Billion Push for Growth, Modernization & Sustainability

India is setting sail towards a transformative future in the maritime sector, with bold initiatives aimed at strengthening shipbuilding, repair, and overall industry modernisation. Announced in the latest budget, these strategic measures are designed to elevate India's maritime infrastructure, enhance global competitiveness, and drive sustainable growth.

Key Highlights of India's Maritime Development Plan:

?? Maritime Development Fund (MDF) – ?250 Billion ($2.9 Billion) A game-changing financial initiative, the MDF will provide long-term, low-cost financial assistance to the shipbuilding and repair industry. The government will contribute 49% of the fund, with the rest sourced from major port authorities, financial institutions, and private sector investors. This move aims to boost India's share in global cargo volume to 20% by 2047.

??? Shipbuilding & Repair Industry Expansion

• New shipbuilding clusters will be developed with 1.0–1.2 million gross tonnage capacity each.
• Infrastructure enhancements include breakwater construction, capital dredging, and utilities support.
• A 10-year rent holiday for land will incentivise private investments.
• The Shipbuilding Financial Assistance Policy has been extended with ?18,090 crores in direct subsidies to boost shipyard competitiveness.

? Fleet Renewal & Green Shipping

• The Shipbreaking Credit Note scheme will issue credit notes worth 40% of the scrap value, enabling the purchase of new, India-made ships.
• The Basic Customs Duty exemption on shipbuilding and shipbreaking inputs has been extended for 10 years, reducing production costs.
• A ?610 crore R&D fund will support new ship technologies, encouraging green and innovative solutions.

?? Port Modernization & Infrastructure Growth

• ?6,100 crores has been allocated to modernize and automate Indian ports, improving efficiency and cargo handling capacity.
• The PM GATI SHAKTI Portal has been extended to private players, allowing multimodal cargo movement at reduced costs.

?? Skilling, Innovation & Development

• ?1,200 crores will establish Shipbuilding Capability Development Centre, fostering advanced ship design and engineering solutions.
• An additional ?1,040 crores will support training centre in the private sector, ensuring a steady supply of skilled maritime professionals.

??? Inland & Coastal Shipping Incentives

• The Tonnage Tax Scheme has been extended to inland vessels, making investment in waterway transport more attractive.
• Large ships meeting specific criteria will be included in the Infrastructure Harmonised Master List, making them eligible for long-term financing and tax incentives.

A New Era for India's Maritime Industry

With these ambitious policies, India is laying the foundation for a self-reliant, technologically advanced, and globally competitive maritime industry. The strategic focus on sustainability, private investment, and infrastructure growth is expected to generate 1.1 million direct and indirect jobs, driving the nation closer to its Vision 2047 goal of becoming a leading global maritime hub.

At Avenir Maritime, we welcome these progressive steps and look forward to contributing to India's maritime transformation.

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