India is accelerating efforts to boost the share of Indian-flagged vessels in global cargo transportation. As announced in the FY 2025 budget, the government will set up a ₹25 000 crore (~US$2.9 billion) Maritime Development Fund (MDF)—with 49% state equity and the remainder from ports and private players—to facilitate long‑term financing for shipbuilding and repair . Under this initiative, a new state-backed shipping company will be launched in partnership with oil refineries and the Shipping Corporation of India, aiming to add at least 1,000 vessels over the next decade and slash dependence on foreign carriers.

Alongside financing reforms, the government plans to extend import‑tax exemptions on ship‑building inputs by ten years, incentivize scrapping of old ships with credit‑note schemes, and support domestic ship‑yards via production-linked clusters . The broader Maritime India Vision 2030 and Amrit Kaal Vision 2047 aim to elevate the nation to a top-10 shipbuilding destination by 2030 and top 5 by 2047, targeting a 20% share of cargo on Indian-flagged ships.

These measures—from financing to fleet expansion and fiscal incentives—underscore a strategic move to retain freight expenditure domestically, strengthen maritime infrastructure, and improve economic resilience.

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