Govt to boost production of Made-in-India merchant vessels, cut reliance on foreign ships

By | May 22, 2025

🛳️ Focus on Indian Shipbuilding

The government plans to invest $10 billion in over 100 crude oil tankers. These will be built under the ‘Make in India’ initiative. This step will modernize the aging fleet and reduce the use of leased foreign vessels.

India’s shipping sector is currently reliant on foreign-owned ships. This raises risks, especially during global tensions or emergencies. Building local vessels will ensure safer, uninterrupted maritime operations.

⚙️ New Policy and Incentives

The Ministry of Ports, Shipping and Waterways (MoPSW) is preparing a shipbuilding incentive scheme. It will offer support to Indian shipyards until 2035.

India ranks 22nd globally in shipbuilding. The new policy aims to place India in the top 10 by 2030 and top 5 by 2047.

Key Highlights:

  • Green Fuel Incentives: 30% financial help for vessels using methanol, ammonia, or hydrogen. Electric or hybrid ships will get 20%.
  • New Shipyards: Four new greenfield hubs will be built in six years to boost repair and construction capacity.
  • Maritime Fund: A ₹250 billion ($3 billion) fund will offer long-term loans. The government will contribute 49%, with ports and private firms funding the rest.

🌿 Push for Green Shipping

India plans to shift all coastal and inland shipping to renewable energy within five years. Projects include hydrogen-powered ferries and clean energy ports. These steps align with global efforts to reduce carbon emissions in the maritime sector.

🏗️ New Shipyards Coming Up

New shipyards will be set up to meet rising demand. One key project is the Poovar shipyard in Kerala. It will build and repair ultra-large container ships and crude carriers. This will reduce reliance on foreign yards and create local jobs.

📈 Strategic and Economic Benefits

The initiative will:

  • Improve energy security by reducing foreign vessel use.
  • Create jobs and growth through new shipyards and related industries.
  • Boost India’s global standing in trade and maritime affairs.