Infrastructure Status Granted for Large Shipbuilding

On 23rd September, the government granted infrastructure status to the construction and operation of large ships as part of the 'Make in India' initiative.

According to a gazette notification from the Ministry of Finance, Indian-owned and flagged commercial ships with a carrying capacity of 10,000 tons or more will now be classified under the infrastructure sector.

Additionally, Indian-owned ships built in India with a capacity of 1,500 tons or more will also receive this benefit.

The Ministry of Finance stated on 19th September that large ships have been included as a new sub-sector under transportation and logistics in the ‘Standardized List of Infrastructure Sub-sectors’ (HML).

This decision aligns with announcements made in the 2025-26 budget.

Infrastructure status will provide several benefits to the shipbuilding industry including easier access to foreign financing, tax-free bonds, tax exemptions, and access to dedicated lenders and funds such as IIFCL.

India had earlier included 'shipbuilding yards' in the infrastructure sector list in 2016. Currently, this list includes five main sectors and 38 sub-sectors, such as transport, energy, water and sanitation, communication, and social and commercial infrastructure.

According to Maritime India Vision 2030, Indian shipping companies face difficulties in expanding their carrying capacity due to lack of necessary financing.

The 2025-26 budget also announced the creation of a Rs 25,000 crore Maritime Transport Development Fund to directly aid ship financing.

The government aims to increase the share of Indian-flagged ships in global freight transportation to 20% by 2047. This fund is expected to attract around Rs 1.5 lakh crore investment in the shipping sector by 2030.