Government's Package for Shipbuilding Industry
The government approved a substantial package of ₹69,725 crore to revitalize the shipbuilding industry, aiming to position India among the top five shipbuilding nations by 2047. The package includes:
- ₹24,736 crore under the shipbuilding financial assistance scheme (extended till March 31, 2036)
- ₹20,000 crore for the maritime development fund
- ₹19,989 crore under the ship development scheme
- ₹4,100 crore for ship breaking credit notes
Objectives of the Financial Package
- Improve long-term financing
- Promote greenfield and brownfield shipyard development
- Enhance technical capabilities and skilling
- Create a robust maritime infrastructure
Current Global and Domestic Landscape
Globally, around 90% of cargo moves through oceans, with China, South Korea, and Japan dominating the industry.
- The global shipbuilding market is valued at $160 billion and is expected to grow to $200 billion by 2030.
- India holds less than 1% market share, primarily building small ships for offshore support, navy, coastguard, and coastal transport.
Challenges in Shipbuilding
- High costs and investment risks
- Regulatory uncertainties due to evolving emission norms
- Technological advancements in engine and vessel designs
- Volatile supply chains and geopolitical risks
Environmental and Technological Aspects
Shipping is responsible for 3% of global greenhouse gas emissions. New ships need to accommodate future fuels like ammonia, hydrogen, and methanol. Indian shipyards are exploring partnerships with Japan and South Korea to address technological challenges.
Indian Port and Shipping Capabilities
Indian ports' aggregate throughput is 1,600 million tonnes, less than what a single port handles in some countries. Feeder vessels indicate dependence on transshipment ports like Singapore or Colombo. India's focus is on gaining credibility with major shipping lines owned by Europe and East Asia.
Investment and Future Prospects
The Maritime Amrit Kaal 2047 report envisions an ₹80 trillion investment in the maritime sector, with ₹54 trillion dedicated to shipbuilding and recycling. India's strategic investment aims to boost naval power and secure trade routes, although continuous government support and subsidies are deemed necessary.
