Govt committed to positioning India as shipbuilding hub: Shantanu Thakur

The Centre is committed to positioning India as a new hub for the shipbuilding sector, which will serve as a vital growth engine of the country's blue economy, generating employment and enhancing global competitiveness, Union Minister Shantanu Thakur said on Wednesday.

 

The Minister of State for Ports, Shipping and Waterways was speaking at the opening day of the 14th edition of the INMEX SMM India, hosted here by Informa Markets. 

The three-day maritime event is bringing together global and domestic maritime stakeholders under the central theme "Building India's Blue Economy: Shipbuilding & Repair as Growth Drivers," with over 80 expert speakers and more than 9,000 visitors.

"The Government of India, through the Ministry of Ports, Shipping and Waterways and the Directorate General of Shipping, is committed to positioning India as a new hub for shipbuilding. The nation has a clear goal of ranking among the top 10 maritime nations by 2030 and among the top five by 2047," Thakur said. 

Shipbuilding and repair will serve as vital growth engines of India's blue economy, generating employment, enhancing global competitiveness, and driving sustainability through green shipping initiatives and modernised infrastructure, the minister added.

Shipbuilding and repair have historically shaped maritime powers, and today more than 95 per cent of global shipbuilding is concentrated in Asia, led by China, Korea, and Japan, with India's share still less than 1 per cent, said Maharashtra's Minister for Fisheries & Ports Development Nitesh Rane. 

"The Government of India has reinforced this mission with initiatives such as the Rs 25,000 crore Maritime Development Fund, the Shipbuilding Financial Assistance Policy 2.0 extended till 2036, incentives for green fuel vessels, infrastructure status for shipyards, and the right of first refusal for Indian-built ships," he said. 

Maharashtra, as the gateway of India's maritime trade with 877 km of coastline, two major ports, 16 non-major ports, and the upcoming Vadhavan Port, has taken a pioneering step by introducing India's first Shipbuilding, Ship Repair, and Ship Recycling Policy 2025, he added. 

The policy aims to contribute one-third of India's shipbuilding and repair targets under MIV 2030 and MAKV 2047, with six planned shipyard clusters at Dighi, Jaigarh, Dabhol, Vijaydurg, Nandgaon, and Bankot, along with 11 stand-alone shipyards at strategic coastal locations, Rane said. 

Key features of the policy, he said, include a 15 per cent capital subsidy on project costs during execution, fiscal stimulus of up to Rs 5 crore or 60 per cent of project costs for infrastructure, R&D, and upskilling, and Rs 1 crore or 50 per cent of annual costs for workforce recycling and training. 

"This framework is expected to unlock investments of over Rs 18,000 crore and create more than 1.4 lakh jobs by 2047. Complementing this, the state is also advancing initiatives, such as policy frameworks for land management and waterfront allotment, DPRs for passenger water transport in the Mumbai Metropolitan Region, and techno-economic feasibility studies for shipyard clusters," Rane added. 

Noting that while the maritime sector currently contributes 4 per cent to India's GDP and just 1 per cent of global tonnage, Jagannathan said the vision is to raise its share to 12 per cent of national GDP and advance from the 16th position globally to the 5th by 2047. 

"Indian seafarers already represent 12 per cent of the global workforce, with a goal to expand this to around 25 per cent, making shipbuilding and repair central to this transformation. 

"The government is strongly supporting this ambition through initiatives such as the Shipbuilding Finance Assistance Scheme, the Maritime Development Fund, shipbuilding and repair clusters, a national shipbuilding mission, the Shipbreaking Credit Note scheme, and upfront subsidies of up to 30 per cent for non-conventional builds," Director General of Shipping Shyam Jagannathan said. 

"Norway leads globally in maritime innovation, from LNG-powered vessels to battery, hydrogen, ammonia, and methanol technologies. India, with its extensive coastline, growing fleet, and trillion-dollar maritime investment plans, is a key partner in advancing the green transition," Royal Norwegian Consulate General, Mumbai, Monica Nagelgaard. 

"India-EFTA Trade and Economic Partnership Agreement will further strengthen the synergy between Norway's innovation and India's scale, talent, and ambition, setting new benchmarks for sustainable maritime growth."