The Indian government has announced the establishment of a ₹30,000 crore Maritime Development Fund aimed at enhancing the shipbuilding and repair sector. This initiative, revealed by Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal, is part of a broader strategy to transform India into a global maritime hub and reduce dependence on foreign ships.

The fund will support the construction of various types and sizes of vessels, thereby fostering local manufacturing capabilities and creating job opportunities in the maritime sector.

The government is expected to contribute approximately ₹15,000 crore (49% of the total fund), while the remaining funds will be sourced from quasi-government entities, private equity investors, and public sector undertakings (PSUs). Major financial institutions have shown interest in participating, indicating a positive outlook for investment in this sector.

This initiative aligns with a larger ₹1.5 lakh crore investment plan focused on upgrading India’s ports over the next five years, which includes developing six deep-draft ports and two transshipment hubs.

The maritime sector is crucial for India's economic growth, with significant indirect benefits across related industries such as steel and engineering. The government aims to establish India as a leader in ship recycling by 2030, ensuring that 85% of ship recycling yards comply with international environmental standards. Additionally, there are plans to create hydrogen hub ports and a multi-fuel bunkering ecosystem to promote sustainable practices within the industry.

The introduction of the Maritime Development Fund represents a significant step towards revitalizing India's shipbuilding industry and enhancing its competitiveness in the global maritime arena. By focusing on domestic capabilities and sustainable practices, the government aims to position India as a key player in maritime trade and shipbuilding by leveraging its strategic geographical advantages.