India Boosts Maritime Might with Infrastructure Status for Large Ships

The Indian government has granted infrastructure status to large commercial ships, aligning with the Make in India initiative. This move, part of the 2025-26 budget, aims to stimulate the domestic shipping industry, providing benefits such as easier overseas borrowings and tax-free bonds through enhanced financial access.

The Indian government has taken a significant step to bolster its maritime industry by granting infrastructure status to large ships. This decision is part of the ongoing Make in India initiative, designed to promote domestic manufacturing and development.

The inclusion of commercial vessels with a gross tonnage of 10,000 or more under Indian ownership and registration in the harmonised master list of infrastructure marks a pivotal move. Smaller vessels, 1,500 tons and above, built in India, also qualify, offering industry players access to financial amenities like easier overseas borrowings and tax-free bonds.

This strategic governmental push is detailed in the 2025-26 budget and aims to expand India's global cargo share to 20% by 2047, bolstered by the creation of a Rs 25,000 crore Maritime Development Fund, intended to support ship acquisition and generate significant investment in the sector by 2030.

(With inputs from agencies.)