Jai Siya Ram

India has launched an ambitious ₹70,000 crore shipbuilding mission as a strategic move to boost its maritime sector and reduce its dependence on foreign vessels. The initiative, officially named the National Shipbuilding Mission, is a 10-year program aimed at making India a global leader in both shipbuilding and ship ownership.

Mission Details and Objectives

The mission is structured around a four-pillar strategy to revitalize the entire maritime ecosystem.

1. Financial Support: The government has allocated a significant portion of the package to three key schemes:
   • Shipbuilding Financial Assistance Scheme (SBFAS): Provides financial aid to domestic shipbuilders to help them compete with international players.
   • Maritime Development Fund (MDF): A fund of ₹25,000 crore that will provide long-term, low-cost financing for shipbuilding and related projects.
   • Shipbuilding Development Scheme (SDS): A scheme worth ₹19,989 crore to finance infrastructure development, including the establishment of new “greenfield” shipbuilding hubs and the expansion of existing shipyards.
2. Infrastructure and Capacity Building: The plan aims to increase India’s domestic shipbuilding capacity to 4.5 million Gross Tonnage annually. The government has already identified large land parcels in states like Odisha, Andhra Pradesh, Gujarat, and Tamil Nadu for the development of new shipbuilding clusters.
3. Technological Enhancement: The mission also focuses on improving technical capabilities, promoting green and high-tech vessels, and encouraging the development of a skilled workforce. This includes establishing an India Ship Technology Centre to support research and development.
4. Policy and Regulatory Reforms: The government has introduced policy changes, such as granting “infrastructure status” to large ships, which will make it easier for companies to secure long-term, low-interest loans. This is a significant step to reduce the cost of capital for Indian shipbuilders.

Direct Challenge to Global Powers and Western Sanctions

While the mission’s primary goal is to achieve self-reliance (Aatmanirbhar Bharat), it is also seen as a strategic play with major geopolitical implications.

• Challenge to China and South Korea: By focusing on government-led financial support and a cluster-based development model, India is directly emulating the successful strategies of maritime giants like China and South Korea. India aims to capture a larger share of the global shipbuilding market, where these nations currently dominate. This includes targeting the production of greener and more technologically advanced vessels.
• Geopolitical Resilience: The mission is designed to reduce India’s reliance on foreign ships for its international trade. India currently spends nearly ₹6 lakh crore annually on foreign shipping services, an amount comparable to its defense budget. By building its own fleet, India aims to strengthen its geopolitical resilience and secure its supply chains against potential disruptions.
• Response to Western Sanctions: The mission is not a direct challenge to Western sanctions but rather a move to strengthen India’s strategic autonomy in a complex global environment. While the US is considering tariffs on Chinese-built vessels, a move that could benefit India, New Delhi’s initiative is about building its own capabilities. India’s goal is to be self-sufficient and not depend on foreign powers for its maritime needs, which would make it more resistant to any future geopolitical pressures, including sanctions.

Ultimately, India’s shipbuilding mission is a long-term economic and security initiative to position the country as a major maritime power and ensure its strategic interests in the Indian Ocean Region and beyond.