$2.9B Maritime Development Fund Created by India

India is set to establish a 250-billion-rupee ($2.9 billion) maritime development fund to provide long-term financing for the country's shipbuilding and repair sector, Finance Minister Nirmala Sitharaman announced on Saturday.

The initiative aligns with Prime Minister Narendra Modi’s vision of transforming India into a developed nation by 2047. As part of this effort, the government is investing heavily in infrastructure to enhance its manufacturing capabilities on a global scale.

Presenting the budget for the fiscal year beginning April 1, Sitharaman revealed that the government will contribute 49% of the fund, with the remainder being raised from ports and private sector participation.

India’s shipping fleet has struggled to keep pace with the nation’s expanding trade, particularly in energy imports and refined oil exports. To address this, the government plans to establish a new shipping company in collaboration with oil refiners and the Shipping Corporation of India, aiming to expand the fleet and reduce dependence on foreign carriers.

Following the budget announcement, shares of Shipping Corporation of India surged 3.8%.

Additionally, the government will promote shipbuilding clusters to enhance ship production capabilities, covering a broader range of categories and capacities. "This will include additional infrastructure, skilling, and technological advancements to strengthen the