New Delhi, Oct 14 (IANS) With the government announcing investments to the tune of Rs 69,725 crore for shipbuilding and maritime reform in India this year, the sector is entering a promising phase of growth.

Shipbuilding, often termed the “mother of heavy engineering”, plays a central role by generating employment, attracting investment, and strengthening national security and strategic independence. India’s shipbuilding sector creates a strong economic impact; each investment boosts jobs 6.4 times and returns 1.8 times the capital, showing its power to drive growth and development, according to an official statement issued on Tuesday.

The Shipbuilding Financial Assistance Scheme, with an outlay of Rs 24,736 crore, provides financial support, ship-breaking credit notes, and steers domestic manufacturing through the National Shipbuilding Mission.

The Maritime Development Fund, with a Rs 25,000 crore outlay, focuses on investment and interest incentivisation, while the Shipbuilding Development Scheme offers capital support, risk coverage, and capacity-building for shipbuilding clusters with Rs 19,989 crore outlay.

Besides, infrastructure status has been granted to large ships to boost domestic shipbuilding through easier financing options.

These measures aim to modernise infrastructure, enhance domestic manufacturing capabilities, and attract global investment, laying a strong foundation for long-term development.

By focusing on innovation, sustainability, and skill development, the sector is well-positioned to meet the strategic goals outlined in Maritime India Vision 2030. Furthermore, its expansion aligns seamlessly with the broader national aspiration of Viksit Bharat 2047, contributing to economic resilience, employment generation, and global competitiveness. With continued collaboration between industry and government, India’s shipbuilding industry is set to become a key pillar of the country’s maritime strength and a driver of inclusive growth, the statement said.

Post-independence, shipbuilding was largely concentrated in public sector units like Mazagon Dock Shipbuilders Ltd (Mumbai), Garden Reach Shipbuilders & Engineers Ltd (Kolkata), and Hindustan Shipyard Ltd (Visakhapatnam). Over the past decade, with the entry of private ship players in the sector, India’s shipping and maritime sector has witnessed a remarkable transformation, with significant strides in cruise tourism, inland water transport, and port infrastructure. Strategic investments, policy reforms, and expanded waterways have collectively boosted cargo movement and coastal connectivity.

MoUs were signed between major ports and coastal states to develop shipbuilding clusters with joint investments, aiming to position India among the top five global shipbuilding nations by 2047. These hubs will integrate shipyards, R&D, MSMEs, and green innovation for sustainable marine engineering.

Cochin Shipyard and Mazagon Dock signed MoUs with Tamil Nadu agencies to set up major shipbuilding complexes, including a Rs 15,000 crore facility with one million GT annual capacity and large-scale job creation.

Additionally, Cochin Shipyard and HD Korea Shipbuilding have partnered to build large commercial vessels in India, supported by the CSL’s new dry dock and a planned Rs 3,700 crore fabrication facility in Kochi, expected to generate thousands of jobs and boost MSME-linked supply chains, the statement added.

–IANS

sps/vd