'No one believed we were serious': Sanjeev Sanyal on India's Rs 69,725 cr shipbuilding push

Economist and Prime Minister’s Economic Advisory Council (PMEAC) member Sanjeev Sanyal on Wednesday said India's shipbuilding ambitions were once dismissed, noting that "just 18 months ago, when we began talking about Indian shipbuilding, no one believed we were serious about it." His comments came after the Union Cabinet cleared a Rs 69,725 crore package to revitalise the country’s shipbuilding and maritime sector.

The Cabinet, chaired by Prime Minister Narendra Modi, said the package recognises the strategic and economic importance of shipbuilding and introduces a four-pillar approach to expand domestic capacity, strengthen long-term financing, develop shipyards, enhance technical capabilities and skilling, and implement reforms in law, taxation, and policy.

The package includes the extension of the Shipbuilding Financial Assistance Scheme (SBFAS) until March 31, 2036, with a total corpus of Rs 24,736 crore. It also features a Shipbreaking Credit Note worth Rs 4,001 crore and the launch of a National Shipbuilding Mission to oversee the implementation of these initiatives.

A Maritime Development Fund (MDF) has been approved with a Rs 25,000 crore corpus, including a Maritime Investment Fund of Rs 20,000 crore-49% of which will be government-backed-and an Interest Incentivization Fund of Rs 5,000 crore aimed at lowering debt costs and improving project bankability.

The Shipbuilding Development Scheme (SbDS), with an outlay of Rs 19,989 crore, targets annual domestic shipbuilding capacity of 4.5 million Gross Tonnage. It will also support mega shipbuilding clusters, infrastructure expansion, the establishment of an India Ship Technology Centre under the Indian Maritime University, and risk coverage, including insurance support.

According to the Cabinet statement, the overall package is expected to unlock 4.5 million Gross Tonnage of capacity, generate nearly 30 lakh jobs, and attract investments worth around Rs 4.5 lakh crore into the maritime sector. The move is expected to strengthen national, energy, and food security by enhancing supply chain resilience and bolster India’s strategic self-reliance under the Aatmanirbhar Bharat vision.

India's maritime sector handles nearly 95% of the country’s trade by volume and 70% by value.