Gujarat has announced a shipbuilding subsidy of up to ₹50 crore for shipyards operating in the state, aimed at strengthening India’s maritime sector and encouraging domestic vessel construction. Under the scheme, shipyards can claim 8% of eligible costs or ₹50 crore, whichever is less, for building both small and large vessels.
The incentive is part of Gujarat’s broader push to develop shipbuilding and ship repair clusters, including in the Gulf of Kutch, Pipavav, and other sites along the state’s extensive coastline. The subsidy is expected to support investment in shipyard infrastructure, including slipways, jetties, cranes, block fabrication capacity, and dredging, as well as training and R&D facilities.
Gujarat’s initiative aligns with the Union Government’s revamped ₹69,725 crore Shipbuilding Package and the Shipbuilding Financial Assistance Scheme, which have been extended to 2036 to boost India’s position as a global shipbuilding hub. Together, these measures aim to create over 1.5 lakh jobs, unlock 4.5 million gross tonnes of shipbuilding capacity, and position India among the top five global shipbuilding nations by 2047.
The state’s Shipbuilding and Repair Policy also includes a 5% subsidy on goods and services procured from MSMEs registered in Gujarat, supporting local ancillary industries and strengthening the shipbuilding ecosystem. With this new incentive, Gujarat is positioning itself as a key maritime growth centre in India’s Act East and Sagarmala frameworks, while attracting investment from defence, shipping, and industrial sectors.
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