The Union Cabinet, led by Prime Minister Narendra Modi, has approved a ₹69,725 crore reform package aimed at revitalizing India’s shipbuilding and maritime industries, a move aligned with the government’s Atmanirbhar Bharat initiative.

The package rests on four major pillars. The Shipbuilding Financial Assistance Scheme has been extended to 2036 with an allocation of ₹24,736 crore, complemented by ₹4,001 crore for a Shipbreaking Credit Note programme. A Maritime Development Fund of ₹25,000 crore has been sanctioned, including a ₹20,000 crore Maritime Investment Fund (with the government holding 49%) and a ₹5,000 crore Interest Incentivization Fund to reduce debt costs.

The Cabinet also launched the Shipbuilding Development Scheme with funding of ₹19,989 crore, targeting an expansion of domestic capacity to 4.5 million gross tonnage annually. Additional reforms cover legal and policy frameworks, development of shipbuilding clusters, infrastructure expansion, and the establishment of the India Ship Technology Centre under the Indian Maritime University.

Union Minister Ashwini Vaishnaw emphasized the sector’s high economic impact, calling shipbuilding the “mother of heavy engineering.” According to government estimates, the initiative could generate 3 million jobs and attract up to ₹4.5 lakh crore in investment. It is also seen as a strategic measure to strengthen India’s maritime autonomy, safeguard supply chains, and reinforce national security.

By advancing this comprehensive package, the government aims to position India as a global hub for shipbuilding and maritime trade, while fostering technological innovation and sustainable growth in the sector.