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India wants to build far more of its own ships. In September 2025, the Union Cabinet approved a ₹69,725 crore package to revitalise shipbuilding and the wider maritime sector. It is the largest public commitment to the industry in decades, and it creates openings for UK partners across the value chain.
What is in the package
| Component | Corpus or outlay | Purpose |
|---|---|---|
| Shipbuilding Financial Assistance Scheme | ₹24,736 crore | Support for Indian yards building ships, extended to March 2036 |
| Maritime Development Fund | ₹25,000 crore | Long-term finance, including a ₹20,000 crore investment fund and a ₹5,000 crore interest incentive fund |
| Shipbuilding Development Scheme | ₹19,989 crore | Capacity expansion, mega shipbuilding clusters, infrastructure and a national ship technology centre |
A National Shipbuilding Mission will co-ordinate the programme. The government expects it to build capacity of 4.5 million gross tonnes a year and attract around ₹4.5 lakh crore of investment. [Source: The Week]
Where the UK fits
The UK has world-leading strengths in the parts of the industry that India is now scaling:
- Maritime finance and insurance: London's ship finance, marine insurance and broking markets.
- Design and engineering: naval architecture, specialist vessels and green propulsion.
- Classification and standards: certification, safety and compliance.
- Skills and training: maritime education and technical training.
- Port and logistics services: port operations, project cargo and terminal development.
Why Maharashtra
Maharashtra combines a long coastline, major ports and a deep industrial base. The new deep-water port at Vadhavan is set to add significant capacity. Through our partnership with MEDC, UKISIF can introduce UK firms to state authorities, port developers and potential yard partners.
What to watch
- How the shipbuilding clusters are selected and when they open for partners
- The operating rules for the Maritime Development Fund and the role of foreign co-investors
- Green shipping requirements that favour low-emission designs
Draws on UKISIF's maritime and shipbuilding research. General information only, not investment advice. Last reviewed [date].