GS3 – Infrastructure – Transportation
Context
India has set an ambitious goal under the Maritime India Vision to move from its current 16th rank to among the top 5 shipbuilding nations by 2047.
Key Targets
- By 2030: Enter the top 10 maritime nations.
- By 2047: Secure position among the top 5 shipbuilding nations.
- GDP Contribution: Raise maritime sector’s share from 4% to 12% of GDP.
- Global Workforce: Expand Indian seafarers’ share in the global workforce from 12% to 25%.
Government Initiatives for the Blue Economy
- Financial Support:
- Shipbuilding Finance Assistance Scheme and Maritime Development Fund ($3 billion), with 45% allocated for shipbuilding and repair.
- Mission Framework:
- National Shipbuilding Mission – long-term strategic push.
- Shipbreaking Credit Note Scheme – promotes recycling and sustainability.
- Incentives:
- Upfront subsidies up to 30% for building non-conventional/green ships.
- Policy Reforms:
- 100% FDI under automatic route in shipping and shipbuilding.
- Infrastructure Expansion:
- $82 billion plan by 2035 to expand port capacity.
Challenges in India’s Shipbuilding Growth
- Low Market Share: Less than 1% of global shipbuilding.
- Key Hurdles: High capital costs, technology gaps, strong competition (China, South Korea, Japan).
- R&D Need: Strengthen domestic green shipping research and enhance private sector participation.