India’s Shipbuilding Push: A Strategic Boost for SMEs, Exports, and Maritime Security
India has taken a decisive step to strengthen its domestic shipbuilding capabilities with the launch of two major initiatives: the Shipbuilding Financial Assistance Scheme (SBFAS) and the Shipbuilding Development Scheme (SbDS). Announced by the Ministry of Ports, Shipping & Waterways (MoPSW), these schemes are designed not only to enhance India’s global competitiveness in shipbuilding but also to create opportunities for small and medium enterprises (SMEs) and bolster the country’s maritime security amid increasingly uncertain global supply chains.
The domestic shipbuilding sector has historically been constrained by limited infrastructure, fragmented technology adoption, and reliance on imported components. By providing structured financial support and long-term capacity creation, SBFAS and SbDS aim to change this landscape. The SBFAS, with a corpus of ₹24,736 crore, offers graded financial assistance of 15–25% per vessel and includes incentives for series production, milestone-linked disbursements and mechanisms like the Shipbreaking Credit Note to integrate ship recycling with new construction. These measures are expected to mobilize investment across the maritime value chain, benefitting shipyards, engineering service providers and SMEs that supply critical components such as engines, propulsion systems and automation technologies.
Similarly, the SbDS, with an allocation of ₹19,989 crore, focuses on long-term infrastructure and capability development. By promoting greenfield shipbuilding clusters and modernizing brownfield yards, the scheme provides SMEs and startups with access to modern facilities, research capabilities, and design innovation through the proposed India Ship Technology Centre. This opens opportunities for niche suppliers, technology innovators, and maritime engineering firms to integrate into high-value supply chains, driving both domestic manufacturing and export potential.
From a trade and exports perspective, these initiatives are particularly timely. Global shipping and logistics have become increasingly vulnerable due to geopolitical uncertainties, regional conflicts, and concentrated production hubs. India’s enhanced shipbuilding capacity will allow it to produce a wider range of vessels domestically, reducing dependency on foreign yards and mitigating risks of supply disruptions. This self-reliance is crucial for India’s SMEs engaged in maritime logistics, port operations, and export-oriented industries, which depend on a stable shipping ecosystem to maintain cost competitiveness and timely delivery.
Maritime security is another critical dimension of this push. By expanding domestic shipbuilding, India can strengthen its commercial and strategic fleet, which has implications for safeguarding trade routes, protecting economic interests in the Indian Ocean Region and supporting naval and coast guard operations. Modern vessels built domestically, coupled with advanced technology and skilled human resources, ensure that India’s maritime infrastructure is not only commercially competitive but also strategically robust.
The combined vision of SBFAS and SbDS is ambitious. Over the next decade, SBFAS is projected to support shipbuilding projects worth nearly ₹96,000 crore, while SbDS will facilitate infrastructure development, research, and skill creation for greenfield and brownfield shipyards. By 2047, India’s commercial shipbuilding capacity is expected to reach 4.5 million gross tonnage per annum, positioning the country as a reliable hub for both domestic and international shipping needs.
For SMEs and exporters, the implications are profound. Enhanced domestic shipbuilding translates into lower lead times, cost efficiencies and greater predictability in procurement of vessels and maritime equipment. Indigenous technology adoption and infrastructure modernization create avenues for partnerships between large shipyards and SMEs, fostering innovation and value addition across the sector.
As Union Minister Sarbananda Sonowal emphasized, this initiative is aligned with the broader goals of Viksit Bharat and Atmanirbhar Bharat anchoring India’s industrial growth in self-reliance, skill development, and global competitiveness. By focusing on domestic capacity building, technology development and financial support mechanisms, India is creating a resilient maritime ecosystem that strengthens both trade and national security, while giving SMEs and exporters the tools to scale globally.
In an era of uncertain supply chains and rising geopolitical risks, India’s shipbuilding revival is more than an industrial initiative; it is a strategic enabler for economic resilience, maritime security and global trade ambitions. For SMEs and export-oriented industries, it marks a moment to integrate with a sector poised for significant growth and long-term strategic relevance.
