India Launches Massive Maritime Development Fund to Propel Shipbuilding Industry

Finance Minister Nirmala Sitharaman announced a Rs 25,000 crore Maritime Development Fund for long-term financing in the maritime sector. The fund aims to enhance shipbuilding, bolster international trade, and support infrastructure development through public and private contributions. Customs duty exemptions and policy revamps were also introduced to strengthen the sector.

In a significant move to boost India's maritime industry, Finance Minister Nirmala Sitharaman announced the creation of a Maritime Development Fund with a staggering corpus of Rs 25,000 crore. This initiative aims to provide long-term financing, supporting the growth and competitiveness of the maritime sector.

Unveiling the budget for 2025-26, Sitharaman highlighted the fund's structure, which will comprise up to 49% government contribution, with the remaining balance sourced from ports and private sector investments. The initiative is designed to bolster domestic shipbuilding, a crucial aspect of India's international trade strategy.

The minister also outlined continued customs duty exemptions on shipbuilding components and a revamped Shipbuilding Financial Assistance Policy to mitigate cost disadvantages. In addition, large vessels will now be included in the infrastructure harmonised master list, and benefits of the tonnage tax scheme will extend to inland vessels, fostering a robust ecosystem for the shipbuilding industry.