India’s Shipbuilding Financial Assistance Policy (SBFAP) has provided in-principle approval to 288 shipbuilding contracts covering 456 vessels, with a combined contract value of INR 197.48 billion. The approvals span a range of vessel types and are aimed at supporting domestic shipyard activity.
In an official statement, the Ministry of Ports, Shipping and Waterways said the vessels covered under the policy include tugs, general cargo vessels, bulk carriers, oil tankers, crane pontoons, heavy deck cargo vessels, roll-on roll-off passenger vessels, crew boats, deck loading craft, coastal research vessels, modular pontoons, passenger catamarans, passenger-cum-motorcycle ferries, passenger ferries, landing craft, jack-up barges and self-elevating platforms.
The ministry stated that financial assistance amounting to INR 6.2057 billion has been disbursed so far to 23 shipyards for the construction and delivery of 204 vessels under the scheme. The support is intended to improve the competitiveness of domestic shipyards and support vessel construction within the country.
The government also approved the Shipbuilding Development Scheme (SBDS) in September 2025. The scheme provides credit risk coverage to Indian shipyards and viability gap funding through capital assistance to brownfield or existing shipyards for expanding production capacity. Guidelines for implementing the scheme have recently been issued.
A third-party assessment of the shipbuilding sector conducted in 2024 identified a high employment multiplier of 6.4 for the industry and noted its potential to generate both direct and indirect employment. The report also highlighted structural constraints affecting the sector, including limited domestic demand, high financing costs, and capacity and technology limitations in shipyards.
To address these challenges, the Government of India approved a broader shipbuilding support package in September 2025 that includes the Shipbuilding Financial Assistance Scheme (SBFAS), the Maritime Development Fund (MDF), and the Shipbuilding Development Scheme (SBDS). The measures are intended to support investment, expand shipyard capacity, and improve the competitiveness of India’s shipbuilding and maritime sector.
The Ministry of Ports, Shipping and Waterways is responsible for policy formulation and development of India’s maritime infrastructure, including ports, shipping, inland waterways, and shipbuilding.
