Maritime Development Boost: India's Strategic Investment in Shipbuilding

Finance Minister Nirmala Sitharaman announced the establishment of a Maritime Development Fund with Rs 25,000 crore to finance the maritime industry, supporting competition and infrastructure growth. The Union Budget extends financial assistance policies and incentives for domestic shipbuilding to bolster India's role in global maritime trade.

In a significant announcement during the 2025-26 budget presentation, Finance Minister Nirmala Sitharaman revealed the creation of a Maritime Development Fund, holding a corpus of Rs 25,000 crore to inject long-term financing into the maritime industry. The fund, aiming to foster and enhance competition, will see up to 49% governmental contribution, with the remainder sourced from private and port sectors.

By 2030, it aspires to spur Rs 1.5 lakh crore in investments in the shipping sector. The minister also declared the continuation of customs duty exemptions on ship manufacturing inputs, alongside revamping the Shipbuilding Financial Assistance Policy to mitigate cost barriers.

Further initiatives include integrating larger ships into the infrastructure harmonised master list and extending the tonnage tax scheme benefits to inland vessels. These moves align with the national vision of becoming a global leader in shipbuilding, nurturing the domestic industry through direct financial incentives and modernized policies.

(With inputs from agencies.)