Wedoany.com Report-Sept. 26, On September 23, 2025, India’s Union cabinet approved a ₹69,725 crore ($8 billion) stimulus package to elevate the country’s shipbuilding industry, aiming to rank among the world’s top ten shipbuilding nations by 2030 and top five by 2047. The initiative, announced in New Delhi, seeks to transform India’s maritime sector, which currently holds the 16th position globally with a capacity of just over 0.1 million gross tonnes.

The plan outlines ambitious goals, including the creation of 4.5 million gross tonnes of new shipbuilding capacity in the near term, with the potential to double this within a few years. It also envisions constructing 2,500 new vessels, expanding port capacity by 250 million tonnes, generating 3 million jobs, and attracting ₹4.5 trillion in investments. These efforts aim to modernize and expand India’s maritime infrastructure to meet global standards.

“We are committed to upgrading the sector to global benchmarks,” said Union Minister Ashwini Vaishnaw, who presented the initiative. The package includes financial incentives for new ship construction, loan subsidies, and cluster development programs to enhance industry collaboration. Additionally, reforms will simplify legal processes for arbitration and dispute resolution, fostering a more efficient business environment.

A key feature of the plan is a 40% credit note for vessels scrapped at Indian shipyards, encouraging the return of tonnage to domestic facilities and promoting a sustainable, circular economy. This incentive is designed to bolster local shipbreaking and recycling industries while supporting the growth of new shipbuilding projects.

India’s maritime stimulus reflects a strategic push to strengthen its position in global shipbuilding, addressing the current gap in capacity and infrastructure. By aligning financial support, regulatory improvements, and sustainability initiatives, the government aims to create a robust ecosystem that supports economic growth, job creation, and technological advancement in the maritime sector. The plan positions India to compete with leading shipbuilding nations while fostering long-term development in coastal regions.