Union Cabinet Approves Rs.69,725 Crore 4-Pillar Strategy to Revitalize India’s Shipbuilding and Maritime Sector.

On 24th September 2025, the Union Cabinet chaired by Prime Minister (PM) Narendra Modi approved a Rs.69,725-crore 4-pillar strategy to strengthen India’s shipbuilding and maritime ecosystem.

      - The plan aims to enhance domestic capacity, provide long-term financing, support shipyard expansion, develop technical skills, and implement policy reforms to position India as a global shipbuilding leader by 2047.

      - Under Pillar 1, the Shipbuilding Development Scheme (SbDS) was approved with a budget of Rs.19,989 crores. The scheme aims to expand India’s domestic shipbuilding capacity to 4.5 million Gross Tonnage (GT) per year, supporting the construction of commercial and defense vessels.

      - Pillar 2 focuses on financing the maritime sector. The Maritime Development Fund (MDF) has been approved with a corpus of Rs.25,000 crores to provide long-term financial support for shipbuilding projects, modernization, and sectoral growth.

Main Point :-   (i) Pillar 3 includes the Shipbuilding Financial Assistance Scheme (SBFAS), extended till 31st March 2036 with a total outlay of Rs.24,736 crores, including a Shipbreaking Credit Note allocation of Rs.4,001 crores. Additionally, the National Shipbuilding Mission (NSM) will be established to oversee all initiatives, aiming to make India a global shipbuilding leader by 2047.

      (ii) Pillar 4 focuses on enhancing workforce skills, technical capabilities, and training, while implementing legal, taxation, and policy reforms to remove investment barriers and attract private and international investments in the shipbuilding sector.