India Set to Approve ₹25,000 Crore Maritime Development Fund
The Indian government is preparing to approve a ₹25,000 crore Maritime Development Fund (MDF) aimed at revitalizing the shipping sector and enhancing indigenous shipbuilding capabilities. The initiative is expected to strengthen maritime infrastructure, reduce reliance on foreign vessels, and position India as a major player in the global shipbuilding industry.
The Maritime Development Fund was initially announced in the Union Budget 2025-26. It is designed to provide long-term, low-cost financial support to shipbuilding projects, port infrastructure, and related sectors. The fund will offer a range of financial instruments, including debt, equity, viability gap funding, and buyer credit, to enable sustainable growth in maritime industries.
Maritime Development Fund to Strengthen Indian Shipping
Under the proposed structure, the government will contribute 49% of the fund’s corpus, while the remaining amount will be mobilized from major port authorities, public sector undertakings, financial institutions, and private sector entities. The fund aims to attract investments of up to ₹1.5 lakh crore by 2030, providing a massive boost to India’s shipping ecosystem.
The primary objective of the MDF is to significantly expand the share of Indian-flagged ships in global cargo movement, targeting an increase to 20% by the year 2047. Currently, India’s share in global shipbuilding remains minimal, and this fund seeks to reverse that trend through strategic interventions.
Indian Shipbuilding to Get a Major Push
The Maritime Development Fund will support the development of specialized shipbuilding clusters, modernization of existing facilities, and promotion of research and technological advancements in the maritime sector. Skill development programs are also being planned to ensure the availability of a trained workforce for the expanding shipbuilding industry.
By boosting domestic shipbuilding capacity, India aims to improve its balance of payments by reducing dependence on foreign vessels for cargo movement. Additionally, enhanced maritime capabilities are expected to strengthen India’s strategic autonomy in regional and global maritime affairs.
Shipping Sector Boost Aligned with Vision 2047
The initiative is part of the broader national vision to make India a developed economy by 2047. The expected Cabinet approval of the Maritime Development Fund will mark a crucial milestone in achieving self-reliance and global competitiveness in the shipping sector.
Apart from economic gains, the move is expected to generate significant employment opportunities and secure India’s maritime interests in an increasingly contested global environment.
