‘If there’s a good time, it is now’: Former shipping secretary on India’s shipbuilding push

Former Indian shipping secretary T K Ramachandran believes the country's shipbuilding industry is poised for growth, following a series of policy reforms and financial incentives unveiled last year. Speaking at the Sagarmanthan: The Great Oceans Dialogue 2026 in New Delhi, Ramachandran highlighted a three-pronged strategy aimed at addressing both demand and supply challenges that hindered India's capacity to build ships.

The government identified demand for more than 100 vessels within the next two years, and established the Maritime Development Fund to provide equity support to businesses in the maritime sector, including shipping, ports and waterways. Additionally, an interest incentive scheme offers subvention of up to 3% on loans, and infrastructure status has been granted to shipping, allowing companies to secure longer loan tenures and lower borrowing costs.

These measures, alongside incentives for domestic ship recycling, are expected to attract international investments. Ramachandran stated that the Indian shipbuilding sector currently ranks around 16th globally, and the new initiatives could help boost its standing. The secretary emphasized that the industry's prospects extend beyond green vessels, with replacement demand, ship recycling, and domestic manufacturing providing further growth opportunities.