Budget 2025: Shipping gets a blast of wind in its sails

The budget has set the stage for putting India on the global shipbuilding map by incentivising mega clusters, according to industry executives and experts, as finance minister Nirmala Sitharaman announced additional infrastructure facilities, skilling and technology to develop the entire ecosystem.

She announced a '25,000-crore Maritime Development Fund, which will offer long-term financing for the industry. In addition, large ships will be included in the infrastructure harmonised master list.

Ports, shipping and waterways minister Sarbananda Sonowal said a key highlight was the proposal to develop new shipbuilding clusters of up to 1.2 million gross tonnage. "This strategic push is crucial in realising India's vision of becoming a $30 trillion economy by 2047," he said.


The clusters will be facilitated to increase the range, categories and capacity of ships.

These measures are in line with calls from the domestic shipping industry to be brought on a par with global standards.

"The Shipbuilding Financial Assistance Policy will be revamped to address cost disadvantages. This will also include credit notes for shipbreaking in Indian yards to promote the circular economy," Sitharaman said.

The FM extended ongoing sops for shipbuilding considering the long gestation period. "I propose to continue the exemption of basic Customs duty on raw materials, components, consumables or parts for the manufacture of ships for another 10 years. I also propose the same dispensation for ship breaking to make it more competitive," she said.

Sitharaman also extended sops for inland waterways. "Presently the tonnage tax scheme is available to only seagoing ships. The benefits of existing tonnage tax scheme are proposed to be extended to inland vessels registered under the Indian Vessels Act, 2021 to promote inland water transport in the country," she said.