Govt unwraps $8 bn outlay to buoy ports, shipping

India is setting sail on its biggest maritime bet yet, with the Union cabinet on Wednesday unveiling an incentive package of ₹69,725 crore or about $8 billion for the shipping and ports industry.

- Subhash Narayan

The move seeks to turbocharge infrastructure that would attract investments in shipbuilding, repairs and breaking, while also promoting domestic ship ownership and enhancing port infrastructure. Along the way, the government hopes to add millions of jobs and anchor India firmly in global shipping lanes.

The broader goal is to catapult India from its current 16th rank in global shipbuilding into the top 10 by 2030-and the top five by 2047.

Briefing mediapersons after the cabinet meeting, Union information and broadcasting minister Ashwini Vaishnaw said the package for shipping is part of an overall ₹95,000crore outlay that also covers railways, highways, human resource development and medical education.

Vaishnaw said the maritime reforms aim to upgrade the sector to global benchmarks while creating 3 million additional jobs and bringing in investment of 4.5 trillion.

He added that the reforms would also support 4.5 million gross tonnes of shipbuilding capacity, which has the potential to reach 8.2 million gross tonnes in a few years' time.

India's current shipbuilding capacity is just over O.1 million gross tonnes, as per government and industry data.