India Launches ₹25,000 Crore Maritime Development Fund To Strengthen Shipbuilding Sector

The Indian government has initiated a ₹25,000 crore Maritime Development Fund aimed at boosting the shipbuilding industry, generating 30 lakh jobs, and attracting investments. This fund encompasses two components: the Maritime Investment Fund and the Interest Incentivisation Fund, part of a broader strategy for maritime growth.

In a major push to strengthen India’s shipbuilding industry, the government has launched a ₹25,000-crore Maritime Development Fund (MDF). Announced by Information & Broadcasting Minister Ashwini Vaishnaw, the initiative aims to generate 30 lakh jobs, attract investment, and bolster export growth.

Structure of the Fund

The fund comprises two components:

1. Maritime Investment Fund (MIF) – ₹20,000 crore

   • Focused on equity financing for shipbuilding, port development, and inland/coastal shipping.

   • Government equity participation capped at 49%, with the remaining 51% sourced from commercial investors.

   • Investments will prioritize Indian tonnage, shipyards, repairs, port infrastructure, inland water transport (IWT), coastal shipping, and multi-modal logistics parks (MMLPs).

   • A Governing Council and fund manager will oversee operations.

   • Interest Incentivisation Fund (IIF) – ₹5,000 crore

     • Offers up to 3% incentive to banks and financial institutions for loans extended to Indian shipyards.

     • The fund will operate for ten years, until March 2036.

Government Vision

Minister Vaishnaw highlighted that the Maritime Development Fund is expected to create 30 lakh jobs, drive domestic and foreign investment, and accelerate export growth. This initiative is part of a broader ₹69,725-crore package approved by the Union Cabinet, aimed at revitalizing the maritime industry through a four-pillar strategy:

• Expanding long-term financing options

• Promoting greenfield and brownfield shipyard development

• Enhancing technical skills and workforce capabilities

• Implementing necessary legal and regulatory reforms

  The fund marks a significant step toward modernizing India’s maritime sector, increasing global competitiveness, and positioning the country as a hub for shipbuilding and related industries.