Anchoring the Future: India's Bold New Shipbuilding Schemes
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With nearly 95% of the country's trade by volume moving through sea routes, India's new shipbuilding schemes aim to build sovereign capacity across commercial and strategic vessel classes.
A New Wave for Indian Shipbuilding
With nearly 95% of the country's trade by volume moving through sea routes, India is setting sail toward a massive maritime transformation — moving from a meagre 0.06% global market share toward a Top 10 position by 2030. A series of powerhouse schemes have been launched to drive this shift.
The Shipbuilding Financial Assistance Scheme (SBFAS)
The cornerstone of India's strategy is the Shipbuilding Financial Assistance Scheme (SBFAS). Valid until March 2036, this scheme aims to level the playing field against global giants.
• Graded Subsidies: Depending on the vessel type, shipyards can receive financial aid between 15% and 25% of the contract value. • Green Incentives: In a push for sustainability, specialized vessels — such as those powered by hydrogen or hybrid propulsion — receive the highest bracket of support. • Ship-Breaking Credit Notes: An innovative feature where owners get a credit note (worth 40% of scrap value) for recycling ships in India, which can then be used to fund new Indian-built vessels.
The Shipbuilding Development Scheme (SbDS)
While SBFAS focuses on the ships, the SbDS focuses on the yards. With an outlay of nearly ₹20,000 crore, it targets:
• Greenfield Clusters: Developing five "National Mega Shipbuilding Clusters" (like the one in Tamil Nadu) through a 50:50 partnership between the Centre and States. • Brownfield Expansion: Providing 25% capital assistance to existing yards for upgrading infrastructure like dry docks.
