Maritime Momentum: India’s Cabinet Clears Rs 697.25 Billion Boost For Shipping And Port Infrastructure

In a landmark decision aimed at transforming India’s maritime economy, the Union Cabinet has approved a comprehensive package of schemes worth Rs 697.25 billion to accelerate growth in the shipping and port sectors. The announcement was made by the Information and Broadcasting Minister on September 24, 2025, following a high-level cabinet meeting chaired by the Prime Minister.

 

The funding will be deployed progressively over the next five years and is expected to catalyze investments in port modernization, coastal shipping, shipbuilding, and green maritime initiatives. The move aligns with India’s Maritime India Vision 2030 and aims to position the country as a global logistics hub.

 

Key Highlights From The Cabinet Approval

 

- Total outlay of Rs 697.25 billion approved for shipping and maritime sector schemes  

- Focus areas include port infrastructure, shipbuilding, coastal connectivity, and green shipping  

- Schemes to be implemented by the Ministry of Ports, Shipping and Waterways in collaboration with state governments and private players  

- Funding to be disbursed in phases from FY26 to FY30  

- Expected to generate over 250,000 direct and indirect jobs  

 

Strategic Objectives And Sectoral Impact

 

The approved schemes are designed to address critical bottlenecks in India’s maritime logistics and enhance competitiveness in global trade. Key objectives include:

 

- Upgrading major and minor ports with smart cargo handling systems  

- Expanding coastal shipping corridors to reduce road congestion and carbon emissions  

- Reviving shipbuilding yards and incentivizing indigenous vessel manufacturing  

- Promoting inland water transport and multimodal logistics parks  

- Supporting research and development in green propulsion and maritime safety  

 

The initiatives will also support India’s export ambitions by improving turnaround times and reducing logistics costs for key commodities such as steel, coal, textiles, and agricultural produce.

 

Green Maritime Push And Sustainability Goals

 

A significant portion of the funding will be earmarked for green shipping initiatives, including:

 

- Electrification of port operations and shore power infrastructure  

- Deployment of LNG and hydrogen-fueled vessels  

- Installation of emission monitoring systems and waste management protocols  

- Development of carbon-neutral maritime clusters and eco-friendly ship designs  

 

These measures are expected to contribute to India’s net-zero targets and enhance compliance with international maritime environmental standards.

 

Private Sector Participation And Investment Leverage

 

The Cabinet’s approval also opens the door for increased private sector involvement through public-private partnerships and viability gap funding. Key areas for private investment include:

 

- Container terminals and dry ports  

- Ship repair and maintenance facilities  

- Maritime training institutes and skill development centers  

- Technology platforms for cargo tracking and port automation  

 

The government anticipates that the Rs 697.25 billion allocation will unlock an additional Rs 1.2 trillion in private and foreign investments over the next five years.

 

Employment Generation And Regional Development

 

The schemes are expected to create substantial employment opportunities across coastal states, particularly in Maharashtra, Gujarat, Tamil Nadu, Andhra Pradesh, and Odisha. Job creation will span skilled and semi-skilled roles in engineering, logistics, operations, and marine services.

 

Regional benefits include:

 

- Revitalization of port towns and industrial corridors  

- Improved connectivity for remote coastal communities  

- Enhanced export competitiveness for MSMEs in maritime clusters  

- Strengthening of India’s blue economy and fisheries infrastructure  

 

Sources: Press Information Bureau, Ministry of Ports, Shipping and Waterways, Economic Times Infrastructure Desk, BusinessLine Maritime Tracker.