Maharashtra government unveils comprehensive policy to boost shipbuilding, repair in state in line with the Centre’s maritime industry focus

Becoming the first state to frame a dedicated policy for shipbuilding in India, Maharashtra on Tuesday (29th April), approved the Shipbuilding, Ship Repair and Ship Recycling Policy, 2025. The decision comes as a major leap towards enhancing India’s maritime capabilities, an area which was prioritised by the central government in this year’s budget.

Haillig the policy, Minister for Fisheries and Ports Nitesh Rane said that with the help of the policy, the state aims to contribute to one-third of India’s shipbuilding targets by the end of the decade. “The goal is to make Maharashtra a hub for shipbuilding, repair, and recycling. The policy aims to create a supportive ecosystem, develop skilled manpower, and promote advanced technology through R&D investment. By 2030, Maharashtra aims to contribute at least one-third of India’s shipbuilding targets,” Rane said.

The policy intends to improve India’s global standing in the maritime sector

The global maritime landscape is dominated by China, Japan and South Korea, with the three of them contributing 50%, 15% and 28% respectively to global shipbuilding. India ranks 21st internationally in shipbuilding, with its 1% contribution. In ship repair, India ranks 20th globally, while in ship recycling, the country stands in second place with a share of 32.6%. Maharashtra accounts for 11 per cent of India’s shipbuilding capacity and 21 per cent of production. The policy is an effort to make use of India’s untapped potential in the maritime sector.

“Ports and waterfronts will be optimally utilised. New Indian ships will be built and repaired within the state, increasing India’s contribution to maritime trade, saving foreign exchange, and enabling the recycling of decommissioned ships. The recovered steel and materials will also be reused. Financial incentives will encourage private and foreign investors to enter the sector. Skill development initiatives via educational institutions will ensure a pipeline of qualified manpower. Most importantly, the policy expresses confidence that Maharashtra will emerge as a leading state in shipbuilding and the broader maritime industry in the near future,” the Minister added.

The policy aims to generate employment opportunities

The policy, entailing an investment of ₹6,600 crore by 2030, has set a target of creating 40,00 jobs by 2030 and 3,30,000 jobs by 2047 in the maritime sector with a further investment of ₹18,000. Maritime infrastructural development is also one of the focus points under the policy, which envisages setting up integrated maritime clusters, modern dry docks, and support facilities to enhance shipbuilding productivity. To ensure operational ease, the policy simplifies approvals, ensures water, electricity and road connectivity, and green recycling processes aligned with international environmental standards.

As per the policy, the Maharashtra Maritime Board will oversee the planning-led development of shipbuilding and recycling, establishment of marine shipyard clusters, identification of suitable land, development of single shipyards and recycling facilities, supportive infrastructure (roads, power, water), and transparent land allocation. Various subsidies will also be provided under the policy, including a capital subsidy of 15% of the project cost, up to ₹1 crore for skill development projects, and up to ₹25 crore for research and development support. Besides, the state government will provide land at concessional rates or long-term leases for 30 years, with the provision of renewal and will also assist in obtaining permits and approvals.

Centre allotted ₹25,000 for the Maritime Development Fund

Maharashtra’s maritime policy falls in line with the Union government’s vision of boosting India’s underdeveloped maritime sector. In the budget 2025-26, the central government allocated ₹25,000 crore to develop India’s maritime potential. In her budget speech in February, Finance Minister Nirmala Sitharaman announced that the ships above a specified size would be included in the harmonised master list (HML) for infrastructure.

The global shipbuilding market was estimated at $207.15 billion in 2023, rising at a 6.5% CAGR to $220.52 billion by 2024. India’s market was valued at $90 million in 2022 and is expected to grow to $8,120 million by 2033, representing a staggering 60% CAGR. India aims to enter the top 10 global rank by 2030 and become one of the top 5 countries by 2047 in the global shipbuilding industry. This ambition is a part of the Modi government’s broader visions, including the Maritime India Vision 2030 and Amrit Kaal Vision 2047, intended to capture a massive share of the global shipbuilding and ship repair markets.

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