Revitalisation of Shipbuilding Industry: ₹69,725 Crore Package
UPSC / SSC current affairs note
Why in news
The government has approved a comprehensive ₹69,725 crore package to revive India's shipbuilding sector, announced under Budget 2025-26. A four-pillar strategy has been adopted to strengthen domestic shipbuilding capacity, maritime financing, and skill development.
Background
India's shipbuilding industry has been lagging globally. The Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 aim to make India a strong and competitive player in global shipbuilding. The new package builds on previous policies like the Shipbuilding Financial Assistance Policy (SBFAP).
Key facts
₹69,725 crore package approved for shipbuilding revival under Budget 2025-26.
Four-pillar strategy: Shipbuilding Financial Assistance Scheme (SBFAS), Maritime Development Fund (MDF), Shipbuilding Development Scheme (SBDS), and skill development.
SBFAS allocated ₹24,736 crore to offset cost disadvantage of Indian shipyards vs global yards.
MDF of ₹25,000 crore includes Maritime Investment Fund (MIF) ₹20,000 crore and Interest Incentive Fund (IIF) ₹5,000 crore.
SBDS allocated ₹19,989 crore to boost annual shipbuilding capacity to 4.5 million gross tonnage.
Infrastructure status granted to Indian-flagged commercial ships ≥10,000 GT and Indian-built ships ≥1,500 GT (announced 19 Sep 2025).
Demand aggregation plan for over 400 ships to provide long-term orders to Indian shipyards.
SBFAS guidelines issued 26 Dec 2025; MDF guidelines issued 20 Feb 2026; SBI Ventures Ltd appointed fund manager for MIF on 26 May 2026.
Three greenfield shipbuilding clusters approved in Andhra Pradesh, Gujarat, and Tamil Nadu under SBDS.
India Ship Technology Centre (ISTC) established as a Section 8 company for design, R&D, skill development.
Prelims pointers
- Shipbuilding Financial Assistance Scheme (SBFAS)
- Maritime Development Fund (MDF) - ₹25,000 crore
- Maritime Investment Fund (MIF) - ₹20,000 crore
- Interest Incentive Fund (IIF) - ₹5,000 crore
- Shipbuilding Development Scheme (SBDS) - ₹19,989 crore
- India Ship Technology Centre (ISTC) - Section 8 company
- Maritime India Vision 2030
- Maritime Amrit Kaal Vision 2047
- UNCTAD - United Nations Conference on Trade and Development
- KOICA - Korea International Cooperation Agency
Mains angles
- Discuss the four-pillar strategy for revitalising India's shipbuilding industry and its potential impact on economic growth.
- Critically examine the role of infrastructure status and demand aggregation in boosting domestic shipbuilding.
- Evaluate the effectiveness of skill development initiatives in the shipbuilding sector.
- How does the shipbuilding package align with India's maritime visions (2030 and 2047)?