Atmanirbharta in Shipping Step in the Right Direction

India’s Cabinet approval of a ₹69,725 crore shipbuilding package represents more than sectoral investment. It is a strategic pivot toward economic sovereignty. This massive commitment, nearly tripled from February’s modest $3 billion allocation, signals recognition of a critical vulnerability: India haemorrhages ₹6 lakh crore annually to foreign shipping companies, matching our defence budget.

- Dr. Rajeev Sijariya

The scale of dependency is staggering. With 90-95% of India’s cargo controlled by foreign lines, we have surrendered freight pricing power and supply chain autonomy. This is not merely an economic inefficiency but a strategic weakness. Recent Red Sea disruptions and doubled shipping costs to Europe underscore how external dependencies can strangle growth overnight. When global shipping routes face geopolitical tensions, nations without domestic maritime capacity become hostages to external circumstances.

Maritime transport handles 95% of India’s trade by volume and 70% by value, making domestic capacity essential for national security. Yet India controls merely 0.77% of global fleet numbers against 1.2% by capacity, woefully inadequate for an economy transitioning from $4 trillion toward $30 trillion by India’s centenary year of independence. This disparity between India’s economic weight and maritime presence reveals the magnitude of untapped potential.

The comprehensive package introduces a methodical four-pillar approach designed to address systemic weaknesses. The first pillar focuses on strengthening domestic capacity through enhanced financing mechanisms. The second pillar promotes both greenfield and brownfield shipyard development, creating manufacturing clusters that can achieve economies of scale. The third pillar emphasises technical capabilities and workforce skilling through dedicated institutions like the India Ship Technology Centre under the Indian Maritime University. The fourth pillar implements crucial legal, taxation, and policy reforms to create a competitive regulatory environment.