The Union Cabinet is expected to approve a Rs 25,000-crore Maritime Development Fund (MDF) aimed at boosting India’s shipping industry. The Ministry of Shipping has submitted the final proposal for Cabinet approval
Background and Budget Announcement
Finance Minister Nirmala Sitharaman had announced the creation of the MDF during the Union Budget on February 1, 2025. Following the budget announcement, the Ministry of Shipping held discussions with industry stakeholders to finalize the proposal. The Expenditure Finance Committee (EFC) has approved the proposal, which has now been forwarded for Cabinet approval.
Funding Details and Contributions
The MDF will provide financial assistance to the shipping sector through equity and debt securities. The government will contribute 49% of the initial Rs 25,000 crore, while the remaining funds will be sourced from major port authorities, other government entities, public sector undertakings (PSUs), financial institutions, and the private sector.
Key Objectives of the MDF
The main goal of the MDF is to support the acquisition of ships and increase the share of Indian-flagged ships in global cargo to 20% by 2047. This increase in the domestic fleet is expected to reduce reliance on foreign vessels, improve India’s Balance of Payments, and strengthen the country’s maritime security. By 2030, the MDF aims to generate investments worth up to Rs 1.5 lakh crore in the shipping sector.
