BUDGET EXPECTATIONS: PORTS, SHIPPING & SHIPBUILDING

17 Jan 2023 , 11:30 AM

There are aggressive capacity expansion/infrastructure development plans for the Indian maritime sector, envisaged under the Sagarmala programme and Maritime Vision 2030 (MIV 2030). While the projects are expected to be funded via the PPP route, any increase in budgetary support for the projects will be a positive.

MIV 2030 also proposes to develop a Maritime Development Fund (MDF) to support the port and maritime sector, with an estimated capital of Rs. 250 billion (Rs. 25 billion support from the GoI over seven years), which will raise long-term funds in the domestic and international markets and lend it to the maritime sector at competitive rates. The setting up of MDF and budgetary allocation for the proposed fund will support the domestic maritime sector.

Further, any budgetary support/incentives for segments like inland waterways, shipping and shipbuilding to increase the share of Indian flagged vessels in global trade and support the modernisation of the domestic shipbuilding sector will also be favourable for the sector.