Summary:

The Indian government is focusing on expanding the shipbuilding sector with a Maritime Development Fund (MDF) of Rs. 25,000 crore (US$ 2.87 billion) announced in the 2025 Union Budget. The fund aims to strengthen infrastructure and competitiveness. Additional efforts to promote sector growth include a Shipbuilding Financial Assistance Policy, customs duty exemptions for raw materials, and capital gains tax concessions for non-residents involved in ship leasing.

The government plans to enhance India's maritime capabilities by expanding its fleet and promoting the shipbuilding industry. To reduce reliance on foreign sources, a new shipping company will be established in collaboration with state-run oil, gas, and fertilizer companies. Currently, Indian vessels account for just 2.6% of the global fleet, but the government aims to significantly increase this share over the next decade, with a Rs. 1,624 crore subsidy.

Source: IBEF

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