RAdm. Sanjay Roye (retd)

In September 2025, the Union Cabinet approved a Rs 69,725 crore package to revitalise India’s shipbuilding and maritime sector. A Press Information Bureau (PIB) release described this initiative not merely as an economic stimulus, but as a structural recalibration of a sector that has long struggled to match India’s maritime ambitions. For decades, India has talked about securing sea lanes, strengthening its naval footprint, and becoming a global maritime power, yet industrial realities have lagged far behind these declared intentions. The new initiatives aim to bridge this gap, creating both the commercial and strategic shipbuilding muscle necessary for a nation that depends on the seas for trade, energy, and security.

The Strategic Imperative

India’s maritime trade dominates its external commerce with nearly 95 per cent by volume and 70 per cent by value moves via the sea. Yet only around five per cent of cargo is carried on Indian-owned or Indian-flagged ships; the remainder flows through foreign carriers due to the unavailability of platforms on our side. This reliance results in an annual foreign exchange outflow of roughly Rs 6 lakh crore, a substantial amount almost equivalent to India’s defence budget. In a recent speech, Prime Minister Narendra Modi has highlighted the strategic vulnerability and economic cost of this dependence, emphasising that a robust domestic shipping and shipbuilding sector is not a choice, but a necessity.

India’s global shipbuilding footprint has been minuscule. The Economic Times reports that India accounts for only 0.06–0.07 per cent of global tonnage, while China commands over 40 per cent and South Korea and Japan hold double-digit shares. For a nation aspiring to maritime power status, these numbers expose the gap between intent and capability. Historically, India’s commercial shipbuilding has been hampered by high capital costs, fragmented supply chains, and inconsistent policy support. While the navy and coast guard have driven some indigenous warship pro