Shipbuilding dreams: Subsidies to help but shipyards must be competitive

Almost 90% of global cargo moves through the oceans with China, South Korea and Japan dominating the ship building industry aided by considerable support from their governments

Last week, the government approved a package of ₹69,725 crore to revitalise the shipbuilding industry and granted infrastructure status for building large vessels. It is a significant step  forward given the government’s ambitions that India should be among the top five ship building nations in the world by 2047.

 

The financial package includes ₹24,736 crore under the shipbuilding financial assistance scheme (now extended till March 31, 2036), ₹20,000 crore for maritime development fund, ₹19,989 crore under the ship development scheme and ₹4,100 crore for ship breaking credit notes. It aims to improve long-term financing, promote