India to stop relying on foreign ships; announces ₹69,725cr plan
India just announced a massive ₹69,725 crore plan to ramp up its shipbuilding game and rely less on foreign ships.
Even though 95% of India's trade moves by sea, only about 5% uses Indian-owned vessels—leading to a huge outflow of nearly ₹6 lakh crore every year.
Why this is urgent for India
China owns 70% of the global shipbuilding market and is fully booked till 2028.
With the US planning penalties for Chinese-built ships at its ports, shipping costs for India could rise even more.
Plus, Indian shipbuilders face a 15-20% cost disadvantage compared to global rivals—so building ships at home is now crucial for economic security.
What's in the package?
The package focuses on expanding capacity, better financing, new infrastructure, and skill upgrades.
The Shipbuilding Financial Assistance Scheme runs through 2036 with ₹24,736 crore set aside.
There's also a ₹25,000 crore Maritime Development Fund for investments and interest support.
Targeted timeline and key players
If all goes well, India will significantly expand shipping capacity in the coming years as targeted by the plan, create around 3 million jobs (yep—lakh = hundred thousand), and attract investments worth ₹4.5 lakh crore.
Cochin Shipyard and Mazagon Dock are among the major beneficiaries and key players in this ambitious push into the future.