According to local news, the Indian Union Ministry of Shipping has been working on a new policy to reduce reliance on foreign vessels in efforts to boost its local shipbuilding industry.
Indian news sources report that the policy will give financial support, known as viability gap funding (VGF), to make domestic shipbuilding projects more feasible. The new policy aims to reduce reliance on foreign vessels while improving the country’s share of global trade.
The National Shipbuilding Mission will manage a ₹18,000 crore financial support initiative, SBFAP 2.0, during the next 10 years. This program will help India develop more coastal, inland, and global trade vessels, reports state.
Furthermore, the government is also introducing a system under which vessels for coastal cargo transport must be manufactured in India and registered starting in FY31.
In addition, it is reported that the government is considering establishing a ₹25,000 crore Maritime Development Fund (MDF) to provide low-cost shipbuilding and infrastructure development loans.
India’s share in global shipbuilding is now less than 1%, but the government plans to increase it to 7% by 2030 and 69% by 2047 according to the reports.
