Shares of shipping companies advanced on Thursday, September 25, after the Union Cabinet approved a massive ₹69,725 crore package to revitalise India’s shipbuilding industry. The move is part of the government’s plan to reduce dependence on foreign ships and regain India’s position as a maritime power.
In early trade, Cochin Shipyard shares jumped over 3% to ₹1,955.90, Shipping Corporation of India (SCI) was up 1% at ₹235.10, Mazagon Dock gained 1% at ₹2,973.90, and Garden Reach Shipbuilders & Engineers (GRSE) rose 1.7% to ₹2,778 on the NSE. Great Eastern Shipping was also seen trading higher.
The package introduces a four-pillar approach, focusing on domestic capacity building, long-term financing, shipyard development, and policy reforms. Key schemes include:
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Shipbuilding Financial Assistance Scheme (SBFAS): Extended till March 31, 2036, with a ₹24,736 crore corpus.
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Maritime Development Fund (MDF): ₹25,000 crore, including a Maritime Investment Fund of ₹20,000 crore and ₹5,000 crore for interest incentivisation.
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Shipbuilding Development Scheme (SbDS): Outlay of ₹19,989 crore to expand shipbuilding capacity to 4.5 million gross tonnage annually and support mega clusters.
The reforms also involve creating a National Shipbuilding Mission and an India Ship Technology Centre under the Indian Maritime University.
Prime Minister Narendra Modi recently underscored the urgency of self-reliance in the sector, noting India spends nearly ₹6 lakh crore annually on foreign shipping services. Despite once having 40% of trade carried by Indian-built ships, this figure has declined to just 5%. India currently holds only 0.06% of the global shipbuilding market but aims to be in the top 10 by 2030 and top 5 by 2047.
Industry data show EXIM cargo share on Indian ships has dropped from 71% in 1987-88 to just 5% in 2022-23. However, with strategic initiatives like Sagarmala and Maritime India Vision 2030, investments of over $82 billion are planned to transform port infrastructure and logistics efficiency.
