India’s Maritime Future: Building Ships, Building Self-Reliance

India is formulating a new strategy to boost the share of Indian-flagged ships in the country’s maritime trade, as the current ₹1,624 crore scheme appears set to miss its targets. Despite the initiative launched in 2021, Indian-flagged vessels still carry only around 8% of import cargo. To address this, the government, through inter-ministerial consultations, has identified a demand for around 200 new ships worth ₹1.3 lakh crore, to be built in Indian shipyards and jointly owned by public sector units. High operating costs, regulatory burdens, and taxation disparities continue to hinder competitiveness, pushing Indian shipowners to seek relief through policy reforms. The move aims to reduce the country’s heavy dependence on foreign shipping lines, which leads to an estimated $70 billion annual forex outgo. Strengthening domestic shipping capacity is essential for India’s ambition to become a significant player in global maritime trade.