Can India Become a Global Shipbuilding Giant by 2047? Govt’s Rs 25,000 Cr Plan Has the Answer!

India sets an ambitious target to become a top shipbuilding nation. The Indian government has taken a major step towards becoming a global maritime power by increasing its focus on building large, ‘Made in India’ merchant ships. Over the next two decades, India plans to grow its shipbuilding industry and reduce dependence on foreign ships for transporting goods. This ambitious move aims to make India one of the top five maritime nations by the year 2047.

The move is not just about trade and economics, it’s also about national security. Government sources explain that foreign ships can avoid Indian ports in times of crisis, such as the recent tension between India and Pakistan. If that happens, India’s international trade can be severely affected. Having a strong Indian fleet will help the country avoid such risks and maintain stable trade routes even in emergencies.

Why India needs its  own ships

As of now, India has about 1,500 merchant ships, but only around 50 to 60 are large vessels, and most are foreign-flagged. During times of international tension or conflict, such as the three-day escalation with Pakistan, foreign ships may choose to avoid Indian waters, which could disrupt trade and harm the economy.

The government believes that being a maritime power is essential to becoming a developed country. Prime Minister Narendra Modi’s vision for a developed India by 2047 includes strengthening India’s maritime capabilities. Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal has said that India has all the necessary elements, such as a strong steel industry, skilled manpower, and a strategic location, to become a shipbuilding powerhouse.

Major policy reforms to boost shipbuilding

The 2025 Union Budget introduced several key reforms to support this vision. One of the biggest steps is the Maritime Development Fund (MDF) worth Rs 25,000 crore. This fund will provide long-term and low-cost loans for shipbuilding, ship repair, and maritime infrastructure projects. The government will provide 49% of the funds, and the rest will come from private companies and Indian ports. This initiative is expected to attract a total investment of Rs 1.5 lakh crore by 2030.

Another important reform is the Shipbuilding Financial Assistance Policy (SBFAP) 2.0, with an outlay of Rs 18,090 crore. It offers direct subsidies to Indian shipyards so they can compete globally. This policy was updated in January 2025 to bring in more private players and encourage faster ship production.

To meet its goal, India is building new shipyards and repair facilities across its coastal states. A mega shipyard project worth Rs 10,000 crore has been proposed in Thoothukudi, Tamil Nadu, in partnership with South Korea’s HD Hyundai and India’s Cochin Shipyard Limited.

In Nellore, Andhra Pradesh, a massive shipbuilding and repair cluster is being developed on 2,000 acres in Dugarajapatnam. The project will include a greenfield port, four dry docks, jetties, and a ship-lift facility. It is expected to bring in Rs 26,000 crore in investments over five years and create 35,000 new jobs.

Other coastal states like Gujarat and Andhra Pradesh have also been chosen for future development due to their strategic locations and existing port infrastructure.

Green initiatives and recycling

To promote sustainable development, the government has launched the Shipbreaking Credit Note Scheme, which offers a 40% credit note on the scrap value of old ships dismantled in Indian shipyards. This credit can be used to purchase new Indian-made ships. This step is expected to boost both the shipbuilding and ship recycling industries.

India is already a major global player in ship recycling, with around 33% of the world’s ship-breaking tonnage handled in Indian yards. The Alang Ship Breaking Yard in Gujarat is one of the world’s largest shipbreaking hubs and contributes significantly to India’s economy.

Future targets: Bigger fleet, cheaper freight

The government aims to increase Indian-flagged ships’ share in global cargo from the current 5% to 20% by 2047. A new state-run shipping company is also being planned in partnership with oil, gas, and fertilizer companies to add at least 1,000 new ships to India’s fleet. This is expected to reduce freight costs by 33% and make Indian exports more competitive.

This is not the first time the Indian government has taken steps to strengthen the maritime sector. In recent years, multiple programs and reforms have been implemented:

• Sagarmala Project (launched in 2015): Aimed at port modernization, port-linked industrialization, and improved connectivity. As of 2024, more than 200 projects under this scheme had been completed.
• Major Port Authorities Act 2021: This law gave more autonomy to major ports in India, allowing them to function more independently and compete globally.
• National Logistics Policy 2022: Introduced to streamline logistics and reduce costs by focusing on multi-modal transport, including shipping.
  These initiatives have built a strong base for the new policies introduced in 2025.

India’s dream of becoming a global shipbuilding leader is based on solid policy planning, financial support, and strategic development. With long-term investment, massive shipyard projects, and sustainability in mind, India is building not just ships, but also national strength, economic growth, and security.

ALSO READ: “Is Maharashtra Set to Become India’s Shipbuilding Giant? New ₹6,600 Crore Policy Hints at a Maritime Revolution!”