New horizons: India pledges $23.8B support to revamp domestic maritime industry

The Indian government said it has ₹2 trillion (around $23.8 billion) allocated to expand domestic shipbuilding capabilities, breathe new life into the country’s maritime industry and position India among the top five shipbuilding nations by 2047.

As informed, this latest effort aligns with the “Maritime India Vision 2030” and the “Maritime Amrit Kaal Vision 2047” strategies.

According to the Ministry of Ports, Shipping and Waterways (MoPSW), expanding the nation’s capacity to build a larger number of vessels annually is the core focus of the initiative. To this end, India reportedly plans to use the financial resources to support the development of four million gross registered tonnage (GRT) in shipbuilding capacity.

As disclosed, the government has also reassessed its Shipbuilding Financial Assistance Policy (SBFAP) to support domestic shipyards.

In the background, India’s Right of First Refusal (RoFR) framework put a ‘top priority’ mark for government contracts involving ships that were built in the country, flying under India’s flag and owned by India-based firms.

To be precise, previously, RoFR primarily benefited Indian-flagged vessels, meaning that if a foreign-built ship was the most attractive bidder, it could take priority.

Now, a ship that is Indian-built, -flagged and -owned will be considered the most eligible for a government-linked project, while those that are Indian-built but foreign-flagged and -owned are now the last to be considered, India’s Ministry of Ports, Shipping and Waterways explained.

In a bid to stir India’s shipping back to vibrancy, MoPSW unveiled that a new Bharat Container Shipping Line, under the Shipping Corporation of India (SCI), would be kick-started, as well as the “Green Tug Transition Program (GTTP)”.

The overarching ambition of GTTP is said to be cutting carbon emissions and minimizing environmental impact by transitioning to 50% of zero-emission tug operations by 2030 and fully green operations by 2047.

Forging ahead with sustainability-oriented efforts, the ministry spotlighted that a Coastal Green Shipping Corridor, beginning with the Kandla-Tuticorin route, is going to be created, with the goal of promoting low-emission maritime transportation along domestic trade lanes. It is going to be established in partnership with SCI, Deendayal Port Authority (DPA) and Chidambaranar Port Authority (VoCPA).

Additionally, a “Harbour Craft Green Transition Program” has been envisioned to lay the foundation for ports to adopt alternative fuels and electrification for their operations, ministry officials noted.

As stated by MoPSW, plans are underway for ‘major’ efforts in India’s major ports, that include an ambition of 150 projects targeted for completion by September 2025.

Meanwhile, the Inland Waterways Authority of India (IWAI) will reportedly allocate ₹100 (approximately $12 million) to improve inland transport in Jammu and Kashmir through the development of three national waterways. This move is anticipated to improve connectivity and economic activity in the region.

As part of India’s endeavors to revamp its maritime industry, the government said that it is prioritizing digitalization and technology-driven efficiency across ports, and in logistics.

As revealed, to ‘streamline’ maritime operations, a Sagarmala Digital Center of Excellence is set to be created together with the Center for Development of Advanced Computing. In parallel, the Sagarmala Startup and Innovation Initiative (S2I2) will allegedly be set up to improve port efficiency.

The Sagarmala program is MoPSW’s flagship initiative that started in 2015 to ‘enhance’ the performance of the country’s logistics sector. It envisages unlocking the potential of waterways and the coastline to minimize infrastructural investments required to meet these targets.

Sharing thoughts on this event, Union Minister of State, Shantanu Thakur spotlighted: “One of our proudest achievements is the 320% increase in inland waterway cargo movement since 2014. This is a significant step toward more affordable, eco-friendly, and efficient transportation.”

“Under Sagarmala, we have modernised port infrastructure, developed multimodal connectivity, and enhanced ease of doing business for the maritime industry,” the Minister added.

The most recent government investment comes on the heels of a separate announcement that came in early February 2025. Union Finance Minister Nirmala Sitharaman presented a long-term financing plan entailing a staggering $2.9 billion which would go toward the establishment of a maritime development fund (MDF), primarily intended for new ship acquisitions.

However, it also covers financial aid for new green shipping initiatives, modernizing existing and building new ports, pouring money into ship repair facilities and encouraging innovation in maritime logistics as well as fleet efficiency.

Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal underscored: “Under the visionary leadership of Prime Minister Shri Narendra Modi, India’s maritime sector has witnessed remarkable growth. Our commitment to transforming ports and waterways remains unwavering.”

Following the announcement, a number of maritime industry stakeholders unveiled interests in deepening their ties with the South Asian nation. Specifically, in mid-February 2025, Danish shipping colossal A.P. Moller-Maersk and India’s biggest shipbuilding and maintenance facility Cochin Shipyard Limited (CSL) joined forces to explore opportunities within the ship repair, construction and maintenance activities in India.

France’s CMA CGM and Switzerland’s Mediterranean Shipping Company (MSC) soon joined Maersk, saying they would also pour efforts into supporting India’s ambition to become a “global maritime hub”.