India is set to triple the Maritime Development Fund (MDF) to ₹70,000 crore, nearly three times the allocation in the February Budget, as part of an aggressive plan to ramp up shipbuilding and port capacity. The expanded fund will back shipyards, green vessel projects, and port upgrades as the country aims for a top five global shipbuilding rank by 2047.
The Expenditure Finance Committee (EFC) has cleared the proposal, which blends 49% concessional capital from the government and major ports with 51% commercial funding from multilateral and sovereign investors. Cabinet approval is expected soon.
By 2047, the maritime sector could require $940 billion in investments, including $388 billion for shipping tonnage and $260 billion for green ships. The MDF is expected to be a key driver in meeting this scale.
Policy momentum is also building. Parliament passed four key maritime bills in the monsoon session, and the new Indian Ports Bill — replacing the 117-year-old Ports Act — has cleared the Lok Sabha.
A revamped shipbuilding assistance scheme will offer up to 25% support for green ships, and vessels costing ₹100 crore or more will now get infrastructure status. Sagarmal Finance Corporation Ltd, India’s first maritime-focused NBFC, is expected to start lending within six months to close financing gaps.
With China and South Korea dominating global shipbuilding, India is targeting a top 10 rank by 2030 and top 5 by 2047. Experts warn that speed is essential if the country wants to compete.
