The Indian government has announced an ambitious plan to build 1,000 merchant navy ships domestically by 2034. The move aims to increase India’s maritime logistics self-sufficiency and reduce reliance on foreign shipping. Currently, India’s merchant fleet comprises around 1,500 vessels, with fewer than 60 classified as large ships.
The Union Budget 2025-26 included reforms to increase shipbuilding capacity. India currently accounts for 1.2% of global ship tonnage. Shipyards face limited automation, longer delivery cycles, and higher production costs than global leaders such as China, Japan, and South Korea. Financing remains expensive, with Indian interest rates approximately twice those of competitors.
To address these challenges, a ₹25,000 crore Maritime Development Fund has been established to attract ₹1.5 lakh crore of investments by 2030. Additional measures include the Shipbuilding Financial Assistance Policy 2.0 and a 40% credit system for recyclable ship scrap.
New marine laws like the Coastal Shipping Bill and Merchant Shipping Bill aim to simplify ownership and reduce chartering expenses. The government founded SCI Bharat IFSC Ltd. at GIFT City to promote ship leasing.
India aims to be among the top 10 shipbuilders by 2030 and a top five by 2047, according to its development vision.
