Ambition Meets Reality: India’s Shipbuilding Dream Faces Rough Waters

Coastal Shipping Bill Aims to Boost Indian Shipbuilding, Faces Industry Backlash.

The Modi government is pushing the Coastal Shipping Bill, aimed at promoting domestic shipbuilding and Indian seafarer employment by tightening licensing norms for foreign-flagged vessels operating in Indian coastal and EXIM trade. The Bill exempts Indian-flagged ships from licensing while imposing nationality and India-built requirements on foreign vessels. While officials see this as a strategic move to enhance local manufacturing and job creation, industry experts have called the proposal "impractical" and "unrealistic" due to India’s limited shipbuilding capacity. Critics warn that enforcing India-built ship rules on EXIM cargo may disrupt trade, as foreign owners are unlikely to comply with one-time deliveries. The government is also preparing a shipbuilding policy featuring financial assistance (15–25%) and a ship recycling credit note scheme, alongside a ₹25,000 crore Maritime Development Fund to support the sector. With India ranked 20th globally in shipbuilding, it aims to enter the top 10 by 2030 and top 5 by 2047 — but major capacity gaps remain.