Analysts pick top stocks as Cabinet okays ₹69,700-cr shipbuilding package

Garden Reach Shipbuilders, Mazagaon Dock Shipbuilders, and Cochin Shipyard rallied up to 4 per cent today. Their share prices have jumped up to 68 per cent in 2025

Shipbuilding stocks today

 

Shares of shipbuilding companies, including Garden Reach Shipbuilders & Engineers (GRSE), Cochin Shipyard, and Mazagon Dock Shipbuilders, rallied up to 4 per cent on the BSE in Thursday's intraday trade after the Union Cabinet cleared a ₹69,725-crore reform package for the shipbuilding and maritime sector, aimed at boosting competitiveness.

 

Cabinet clears ₹69,725 cr package to boost shipbuilding, maritime sector

 

On Wednesday, the Cabinet Committee of Economic Affairs (CCEA) cleared a ₹69,725-crore package for the shipbuilding and maritime sector. The package includes ₹24,736 crore under the Shipbuilding Financial Assistance Scheme, offering 15–25 per cent support for vessels depending on size and type, valid till March 2036; a ₹19,989 crore Shipbuilding Development Scheme featuring a 40 per cent ship-breaking credit note redeemable for new vessel construction; and a ₹25,000 crore Maritime Development Fund, with a ₹5,000 crore Interest Incentivisation Fund providing up to 3 per cent incentives for loans to shipyards.

 

As per the government, these reforms will unlock 4.5 million gross tonnage of additional capacity annually, generate 3 million jobs, and attract investments of about ₹4.5 trillion.

 

ICICI Securities on shipbuilding sector

 

The brokerage firm believes these reforms will create significant opportunity for domestic shipbuilders in terms of global cost-competitiveness (as financial assistance, interest subsidies, and credit note mechanisms would reduce the cost burden of vessel construction) and meeting demand for vessels, driven by replacement demand and greener or hybrid vessels.

 

Currently India's share in global ship ownership is ~1 per cent and the sector targets to be in top 5 by 2047. "These reforms are expected to provide structural benefits to India's maritime ecosystem and would benefit companies like Mazagon Dock Shipbuilders, GRSE, Cochin Shipyard, L&T etc.," the brokerage firm said in a note.

 

On the bourses, GRSE shares (up 68 per cent), Mazagaon Dock Shipbuilders shares (32 per cent), and Cochin Shipyard shares (up 24 per cent) have outperformed the BSE Sensex thus far in the calendar year 2025, which gained 4 per cent during the same period.

 

However, these stocks have fallen by up to 24 per cent from their respective record highs, touched in June 2025.

 

Indian Shipbuilding Industry and Government Initiatives

 

India's shipbuilding and shipping sectors are undergoing strategic transformation under the Government of India's long-term maritime vision. Through the Maritime India Vision 2030 (MIV 2030) and Maritime Amrit Kaal Vision 2047 (MAKV 2047), the Government has set ambitious targets to elevate India's position to the 10th largest globally in ship owning and shipbuilding by 2030, and 5th by 2047. These targets are supported by targeted policy interventions and infrastructure development programs, Cochin Shipyard said in its FY25 annual report.

 

To boost internal demand, the Government has initiated demand aggregation across key user ministries. This includes the procurement of 80 ships by 2035 with an estimated value of $2.8 billion, 200 green tugs under the Green Tug Transition Programme (GTTP) by 2036 ($2.6 billion), and 1,000 inland vessels under the Harit Nauka programme by 2035 ($1.2 billion). In addition, a projected requirement of 40 dredgers by 2030 has been identified, representing a market opportunity of approximately $2.3 billion.

 

Overall, the government is showing a clear intent to position India as a major global hub for shipbuilding and ship ownership and towards this laying the groundwork for a globally competitive and resilient maritime ecosystem, the company said.