Modi Pushes for Revitalizing India’s Shipbuilding Industry
During a recent address at the ‘Samudra se Samriddhi’ program in Bhavnagar, Gujarat, Prime Minister Narendra Modi criticized previous governments for India’s declining shipbuilding capabilities. He highlighted that India spends approximately USD 75 billion annually on leasing foreign vessels, a figure nearly equivalent to the country’s defense budget. Modi emphasized the need to restore India’s maritime heritage and invest in domestic shipbuilding to reduce reliance on foreign shipping.
Dependence on Foreign Vessels
Prime Minister Modi pointed out the significant financial burden of leasing foreign vessels, stating that India pays around ₹6 lakh crore each year for shipping services. He lamented that this reliance has led to a drastic decline in the use of Indian-made vessels, which now account for only five percent of the country’s shipping needs. Modi attributed this situation to the policies of the Congress party, which he claimed prioritized leasing over developing a robust shipbuilding industry. He urged the audience to consider the economic implications of this dependency, noting that billions of rupees are funneled into foreign economies instead of fostering local job creation and industry growth.
To combat this trend, Modi announced plans to invest over ₹70,000 crore in modernizing Indian shipyards. He described shipbuilding as a vital industry that supports various sectors, including steel, machinery, and textiles. The Prime Minister highlighted that the decline of shipyards in Gujarat, with six major facilities closing in the past decade, has severely impacted local economies. However, he expressed optimism about the future, citing a recent memorandum of understanding (MoU) signed by Swan Defence and Heavy Industries Ltd (SDHI) with the Gujarat Maritime Board to enhance shipyard capabilities and create a sustainable maritime workforce.
Reviving Domestic Shipbuilding
Modi outlined several reforms aimed at revitalizing the shipbuilding sector, emphasizing India’s historical expertise in constructing large vessels. He noted that the Indian Navy has inducted over 40 ships and submarines in the last decade, all built domestically, including the aircraft carrier INS Vikrant. This achievement, he argued, demonstrates India’s potential to reclaim its status as a maritime power.
To further support the industry, Modi announced that the construction of large vessels would receive “infrastructure” status, enabling shipbuilders to access easier financing and interest rebates. This designation is expected to alleviate financial burdens and enhance competitiveness in the global market. Additionally, SDHI signed another MoU with Sagarmala Finance Corporation Limited to explore various maritime projects, including ship repairs and infrastructure development.
In conjunction with these initiatives, Modi laid the foundation for a 100 MW solar power project in Vadodara and inaugurated an acrylics and oxo-alcohol plant at the Gujarat Refinery, showcasing a broader commitment to sustainable energy and industrial growth in the region.
