A Rs 25,000-crore Maritime Development Fund (MDF) for the shipping industry is anticipated to be approved shortly by the Union Cabinet, according to sources. The final plan was submitted to the Cabinet for approval by the Ministry of Shipping.
The MDF was established to support India’s maritime industry, as the Finance Minister had previously stated in the Union Budget speech on February 1, 2025. The Ministry of Shipping and industry stakeholders engaged in extensive discussions after the budget announcement. The final plan, which outlines the procedures for using funds, was approved by the Expenditure Finance Committee (EFC), which is chaired by the Expenditure Secretary, based on these discussions. It has since been sent to the Cabinet.
The plan states that the fund will use debt and equity securities to give the maritime industry financial support. 49% of the initial fund, which is estimated to be Rs 25,000 crore, comes from the government. The remaining sum will be raised from the private sector, Central PSUs, financial institutions, other government agencies, and important port authorities.
The MDF intends to fund ship purchases and raise the proportion of ships flying the Indian flag in international trade to 20% by 2047. It is anticipated that an expanded domestic fleet will safeguard India’s strategic maritime interests, improve the balance of payments, and lessen reliance on foreign ships. Up to Rs 1.5 lakh crore in investments in the shipping industry are the MDF’s goals by 2030.
