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SYNOPSIS
India's ₹250 billion Maritime Development Fund gives a significant fillip to shipbuilding, port modernization, and waterways. Key initiatives include Shipbuilding Clusters, fund assistance, and extended inland vessel policy aiming for 20% of the global shipping business before 2047.
The maritime sector in India is entering a new expansionary period because of the newly created ₹25,000 crore Maritime Development Fund in the 2025 Union Budget. The fund represents a strategic investment effort to advance shipbuilding domestically, update the ports, and expand inland waterways which will reduce the Indian maritime sector's dependency on foreign shipping while elevating India’s global shipping positions. These strategic initiatives enable the country to produce sustained maritime expansion while boosting private investments and developing employment possibilities.
The core element of this initiative comprises Mega Shipbuilding Clusters which will be specially designed to process shipbuilding operations ranging from 1.0 to 1.2 million Gross Tonnage (GT). The MDF will supply extended financial resources to the shipbuilding sector and repair facilities that will enable India to construct its shipping fleet and reduce expenditures on maritime transport services from overseas operators. The government wants India to increase its share to 20% in global shipping by 2047 to become a dominant force in maritime logistics. The shipyard received a ₹6,100 crore allocation to implement upgradation, modernization, and automation to enhance cargo handling capabilities for better logistics efficiency.
Shipbuilding incentives have received another ten-year Basic Customs Duty (BCD) exemption on shipbuilding and shipbreaking materials from the government. The price reduction for ship manufacturers in India will strengthen their competitiveness in worldwide ship markets. Through the Credit Note Scheme shipowners receive a 40% credit on decommissioned ship scrap value which should spark investments toward buying domestic ship manufacturing vessels.
The initiative emphasizes human capital development and technological innovation as a high priority. The Indian government dedicated ₹1,200 crore to establishing Shipbuilding Capability Development Centers (SCDC) and used ₹1,040 crore to fund private-sector shipbuilding design and training institutes. The maritime sector expansion will receive a skilled workforce from these initiatives which are expected to create 11 lakh jobs. Ship technology R&D receives additional funds The Tonnage Scheme has been expanded to cover inland vessels which promotes cargo transportation by connecting benefits to vessel capacity instead of income. The enhancement of investment potential in inland waterways through this policy change allows shipping companies to seek greater opportunities. The PM GATI SHAKTI Portal will achieve additional cargo efficiency by permitting private participation which enables lower-cost multi-modal infrastructure planning. The Infrastructure Harmonized Master List (HML) will incorporate large vessels so financing becomes more accessible and supports Indian shipping development through investment.
India is developing into a leading maritime hub through these innovative decisions that reinforce its self-reliant India policy framework. When carried out properly these policy reforms will improve India's maritime infrastructure while creating employment and stimulating nationwide economic development.
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