India unveils a new plan for shipbuilding

In order to propel India’s shipbuilding industry into the top tier of the world, the Indian government is about to introduce a new shipbuilding incentive program. With the ambitious goal of moving India from its current 22nd position in the world’s shipbuilding rankings to inside the top 10 by 2030 and the top five by 2047, the Ministry of Ports, Shipping, and Waterways (MoPSW) is creating a strategy that will significantly help Indian shipyards till 2035.

T.K. Ramachandran, Secretary of MoPSW, made the announcement and reaffirmed the government’s commitment to advancing India’s shipbuilding capabilities through a range of policy changes and incentives. The program is in line with the nation’s Maritime India Vision 2030 and the larger Maritime Amrit Kaal Vision 2047, both of which aim to establish India as a major maritime power in the world. This scheme’s emphasis on sustainability is one of its main characteristics. India will join the growing green shipping business when the government provides 30% financial help for ships that run on green fuels like methanol, ammonia, or hydrogen fuel cells. Additionally, 20% financial assistance will be provided to ships with electric or hybrid propulsion systems, demonstrating the government’s dedication to decarbonizing the marine industry.

Despite its strategic importance and substantial economic and employment potential, India’s shipbuilding sector confronts obstacles like inefficiency, little private participation, and a lack of regulatory assistance. India currently only accounts for 0.05% of the world’s shipbuilding market, while major producers like China, Japan, and South Korea collectively account for over 90% of production. India has a great chance to increase its shipbuilding capacity as a result of this mismatch. India may emerge as a major participant in the global shipbuilding supply chain since shipyards across the world are completely booked through 2028.