Sat Feb 01 16:38:54 UTC 2025: ## India’s Budget 2025: ₹25,000 Crore Maritime Fund to Boost Indigenous Shipbuilding

**New Delhi, February 1, 2025** – The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, unveiled a significant push for India’s maritime sector, allocating ₹25,000 crore for a Maritime Development Fund (MDF). This fund, with a 49% government contribution and the rest from port authorities, public sector enterprises, and private entities, aims to increase the share of Indian-flagged ships in global cargo volume to 20% by 2047.

The MDF will provide financial assistance through equity or debt securities, directly benefiting ship acquisition and boosting the indigenous fleet. The government anticipates the MDF will generate ₹1.5 lakh crore in investment by 2030, reducing reliance on foreign ships and improving India’s balance of payments.

Further bolstering the shipbuilding industry, the budget proposes a 10-year extension of Basic Customs Duty exemption on raw materials for ship manufacturing and ship breaking. A new scheme will establish mega shipbuilding clusters with a capacity of 1.0 to 1.2 Million Gross Tonnage (GT) each, receiving direct capital support for infrastructure development including breakwaters, dredging, and land concessions. This initiative is coupled with ₹6,100 crore allocated to upgrade existing shipyards, enhancing efficiency and output.

The Shipbuilding Financial Assistance Policy 2.0, with a ₹18,090 crore outlay, will continue providing financial subsidies to Indian shipyards. An additional ₹6,100 crore is earmarked for modernizing port operations. Finally, the benefits of the tonnage tax scheme will be extended to inland vessels, promoting inland water transport.

Minister Sarbananda Sonowal highlighted the budget’s focus on unlocking the potential of India’s marine sector and its contribution to achieving the nation’s $30 trillion economy vision by 2047. These measures, the government believes, will enhance India’s global competitiveness and establish it as a leading maritime hub.

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