Inside India’s richest state’s new plan to boost shipbuilding

1 / 9In a significant step towards boosting India’s maritime capabilities, the government of Maharashtra has unveiled a comprehensive Shipbuilding, Ship Repair, and Ship Recycling Policy 2025, aimed at making India’s richest state a leader in maritime manufacturing and services. (A grab from the livestream of the IMEC summit in Mumbai on April 28).2 / 9The new policy aims to take Maharashtra’s share of shipbuilding and repair capacity within India from 11% to 33% by 2030. It will promote dedicated shipyards, and ship recycling, facilities, and build a favourable ecosystem by leveraging the state’s coastal infrastructure. File image: Garden Reach Shipbuilders.3 / 9The state will offer capital subsidies of up to 15% of project costs and financial support for workforce training and R&D — including up to ₹5 crore for technological innovation. The policy encourages private sector participation through transparent land allotments by the Maharashtra Maritime Board and offers land at concessional rates or long-term leases to incentivise investment.  File image: Chowgule shipyard4 / 9The government will also focus on building strategic infrastructure such as integrated maritime clusters, modern dry docks, and support facilities. It also promises to simplify approvals, ensure water, electricity, and road connectivity, and support green recycling in line with international environmental standards.5 / 9By 2030, the policy aims to attract ₹6,600 crore in investment and generate over 40,000 jobs. This figure is projected to rise sharply by 2047, with anticipated investments of ₹18,000 crore and over 3.3 lakh new employment opportunities in the maritime sector. Stock image source: Canva6 / 9Making India one of the top 10 shipbuilding nations by 2030, and one of the top five by 2047, is the government’s stated goal. China, Japan, and South Korea own over 93% of all the ships in the world. India ranks 21st globally in building ships. However, the country ranks second in ship recycling with a 32.6% share.  Stock image source: Canva7 / 9To address these, the Union government has already set aside ₹25,000 crore under the Maritime Development Fund and provided ₹4,000 crore under the shipbuilding support policy from 2016 to 2026. Indian ships are also now given preference in tenders and charters, along with tax reliefs. Stock image source: Canva8 / 9While the opportunities in the shipbuilding ecosystem are vast, the challenges are equally complex. Low labour productivity, a lack of ancillary industries, limited capital, and outdated technology have all held back India’s progress in this sector. FILE PHOTO: A vessel under construction at a shipyard of Huanghai Shipbuilding Co in Weihai, Shandong province, China November 6, 2018. REUTERS/Stringer9 / 9Indian companies often struggle to compete with global players due to scale and technological gaps. For example, the Bureau of Indian Standards doesn’t allow recycled steel and that has been a constraint. High taxes have also been a complaint from the industry. Workers pull ropes tied to “Dunagiri”, a stealth frigate warship under Project 17A, built by Garden Reach Shipbuilders & Engineers Ltd (GRSE) for the Indian Navy, during its launch in Kolkata, India, July 15, 2022. REUTERS/Rupak De Chowdhuri

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