India's Shipbuilding Sector Gets Mega Boost with Rs 69,725 Crore Package

On Wednesday, the Union Cabinet approved a Rs 69,725 crore package to revitalize India's shipbuilding and maritime ecosystem, recognizing its strategic importance. The package introduces measures to boost domestic capacity and promote shipyard development while enhancing technical skills. The initiative also includes legal, taxation, and policy reforms aimed at strengthening maritime infrastructure.

Central to the package is the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 31, 2036, with a Rs 24,736 crore corpus. Additionally, a new National Shipbuilding Mission will oversee these initiatives. The Maritime Development Fund, set with Rs 25,000 crore, will extend long-term financing, guiding the sector's growth.

Moreover, the Shipbuilding Development Scheme targets expanding domestic capacity to 4.5 million Gross Tonnage annually. The initiative is expected to unlock significant shipbuilding capacity, create approximately 30 lakh jobs, and attract investments worth Rs 4.5 lakh crore. Beyond employment, it aims to reinforce India's geopolitical resilience, advancing 'Aatmanirbhar Bharat' with its focus on strategic autonomy and pathway to bolster the economy through Make in India initiatives.