India Boosts Maritime Might with Extended Ship Flagging Subsidies

The Indian government has extended a subsidy scheme for the flagging of merchant ships in India until the 2030-31 financial year. Aimed at reinforcing India's maritime capabilities, this initiative provides financial incentives for Indian companies participating in international bidding for government cargo imports, aligning with Atmanirbhar Bharat goals.

In a significant move to bolster the nation's maritime capabilities, the Indian government has announced the extension of a subsidy scheme that supports the flagging of merchant ships in India. The initiative will now run until the 2030-31 financial year, fostering a stronger global shipping presence.

Originally approved in July 2021 with an outlay of Rs 1,624 crore, the scheme aligns with the Atmanirbhar Bharat policy. It provides financial incentives to Indian shipping companies that engage in international bids for importing government cargoes. Finance Minister Nirmala Sitharaman introduced the extension in her FY22 budget speech.

The scheme offers a subsidy on bids for ships less than 10 years old, ensuring they are financially competitive against foreign bidders. However, ships older than 20 years are excluded. The shipping ministry indicated potential requests for additional funding to expand the scheme's scope.