Union Budget 2025 : Modi Govt plans big on shipbuilding
NEW DELHI : In a massive boost to India’s Shipbuilding industry, the Modi Government has accorded the coveted ‘infrastructure’ status for large ships. Finance Minister Smt. Nirmala Sitharaman announced in her speech for Budget 2025-26 on 1st February that the ships above a specified size would be included in the harmonised master list (HML) for infrastructure. The Modi government also allocated a much-needed Maritime Development Fund (MDF) to the tune of Rs 25,000 crore to unlock India’s huge potential in the maritime sector.
Prime Minister Shri Narendra Modi hailed the Union Budget 2025 as “Janata Janardan Ka Budget” and lauded the employment-driven initiatives proposed. Highlighting the significance of giving infrastructure status to shipbuilding, PM Modi said, “With this status, large-scale ship construction in India will be encouraged, providing a fresh impetus to the ‘Atmanirbhar Bharat’ campaign. Shipbuilding is a sector that generates extensive employment.”
The global shipbuilding market was estimated at $207.15 billion in 2023, rising at a 6.5% CAGR to $220.52 billion by 2024. India’s market was valued at $90 million in 2022 and is expected to grow to $8,120 million by 2033, representing a staggering 60% CAGR.
While India currently ranks 22nd in the global shipbuilding industry, India aims to enter the top 10 global rank by 2030 and become one of the top 5 countries by 2047. This ambition is a part of the Modi government’s broader visions including the Maritime India Vision 2030 and Amrit Kaal Vision 2047, intended to capture a massive share of the global shipbuilding and ship repair markets.