India Pumps $2.8 billion into shipping with new maritime fund

In India, India Shipping News reports the 2025-26 Union Budget includes a $2.8 billion Maritime Development Fund, announced in New Delhi by Finance Minister Nirmala Sitharaman on February 5, to support long-term financing and promote competition in the maritime sector. The fund will have up to 49% government backing, with the rest sourced from ports and private investors.

The Shipbuilding Financial Assistance Policy will be revamped to address cost disadvantages, including Credit Notes for shipbreaking in Indian yards to promote the circular economy. Large ships above a certain size will be added to the infrastructure harmonized master list, expanding eligibility for investment incentives. The budget also proposes Shipbuilding Clusters, aimed at increasing ship production capacity with new infrastructure, workforce training, and technology development.

Acknowledging shipbuilding’s long lead times, the minister proposed a 10-year extension on Basic Customs Duty exemptions for raw materials, components, and consumables in ship manufacturing. The same benefit will apply to shipbreaking to enhance competitiveness.

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