GS 3 – Infrastructure
Context
- India currently holds less than 1% share in global shipbuilding.
- The Government of India has set an ambitious target to position India among the top five shipbuilding nations by 2047.
- Announcement made by Shantanu Thakur, Minister of State for Ports, Shipping, and Waterways.
Government’s Vision
- Goal:
- To move up from current global ranking to top 30 by 2030.
- To achieve top 5 position by 2047.
- Part of India’s ‘Blue Economy’ strategy:
- Promoting economic growth,
- Enhancing global competitiveness,
- Driving sustainability through green shipping initiatives,
- Modernising shipyards and ports.
Strategic Targets
- Increase India’s contribution to global GDP from shipping:
- Currently at 0.5%, aiming to increase share to 12% by 2047.
- Expand shipbuilding and repair workforce:
- From 12% to 25% of the global shipbuilding workforce.
- Focus on sustainable and green shipbuilding practices.
Government Support Initiatives
Several policy measures and schemes are being implemented:
- Shipbuilding Finance Assistance Scheme – to provide financial aid to shipyards.
- Maritime Development Fund – $3 billion fund to boost shipping and related infrastructure.
- National Shipbuilding Mission – to coordinate and streamline development efforts.
- Shipbreaking Credit Note Scheme – to encourage ship recycling and green practices.
- Subsidies and incentives:
- Up to 30% for conventional shipbuilding,
- Up to 100% for non-conventional builds.
Importance of Shipbuilding for India
- Strengthens India’s maritime economy and trade competitiveness.
- Boosts employment generation in skilled shipbuilding and repair sectors.
- Enhances national security by reducing dependence on foreign-built ships.
- Positions India as a global maritime superpower.