Why in News
- At INMEX SMM India 2025, the Government announced plans to position India among the Top 10 maritime nations by 2030 and Top 5 by 2047.
- India aims to make shipbuilding & repair central to its blue economy strategy under Maritime India Vision 2047.
Relevance:
- GS III – Economy: Maritime economy, shipbuilding industry, employment generation, blue economy.
- GS III – Infrastructure & Security: Indigenous tonnage, naval capacity, strategic maritime logistics.
- GS II/III – Governance: Maritime India Vision 2047, public-private partnerships, cluster development, policy incentives.
Basics
- Shipbuilding = design, construction, and repair of ships.
- Global context: Currently dominated by China, South Korea, Japan.
- India’s status:
- Contributes 4% to India’s GDP.
- Holds ~1% of global tonnage.
- Ranked 16th globally in shipbuilding.
Overview
Government Initiatives
- Shipbuilding Finance Assistance Scheme – long-term financial support.
- Maritime Development Fund ($3 billion) – 45% for shipbuilding/repair, 20% for Indian tonnage.
- National Shipbuilding Mission – capacity expansion & modernization.
- Shipbreaking Credit Note scheme – boost recycling & green practices.
- Upfront subsidies (up to 30%) – for non-conventional (eco-friendly) builds.
- Clusters – shipbuilding and repair hubs to integrate ecosystem.
Strategic Importance
- Economic: Raise contribution from 4% → 12% of GDP by 2047.
- Employment: Expand maritime workforce share from 12% → 25% of global workforce.
- Security: Indigenous tonnage supports naval & commercial needs, reducing import dependence.
- Geopolitical: Enhances India’s status as a maritime power in Indo-Pacific.
- Sustainability: Push for green shipping, ship recycling, energy-efficient vessels.
Challenges
- Competition: China, South Korea, Japan dominate with economies of scale.
- High capital & technology intensity.
- Low domestic demand compared to global players.
- Skill gaps in advanced marine engineering.
- Regulatory hurdles in financing and ease of doing business.
Way Forward
- Public–private partnerships to reduce investment burden.
- Integration with Sagarmala & Gati Shakti projects.
- Skill training under Maritime Skill Development programs.
- Promote green hydrogen, LNG-based, autonomous ships.
- International collaborations for technology transfer.
