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FY 2026 & Budget - India's push for 2047 Maritime Amritkaal

  • Writer: Antra Gupta
    Antra Gupta
  • Mar 22
  • 9 min read
Finance Minister Nirmala Sitharaman seen before presenting the Budget 2025-26 in Parliament
Picture from Indian Express

As a trillion-dollar economy and on its way to becoming the third-largest economy, India’s share of maritime and coastal development remains abysmal compared to the other economic giants. Despite having a 11,098.81 km coastline, India holds less than 1% shipbuilding share and around 1.2% of ship ownership and ranks as the 16th largest maritime nation globally. India also holds 30% of global shipbreaking market share, ranking as the third-largest ship-recycler by tonnage, with the world’s largest ship-breaking facility located in Alang, Gujarat. Maritime trade accounts for nearly 95% of India’s trade by volume and around 70% by value. Therefore, maritime development becomes a key driver for not only India’s economic growth but strategic security as well.


Budget Boost for strengthening India's maritime backbone for Amritkaal 2047
Picture from Ministry of Ports, Shipping and Waterways social media

Through the three Kartavyas of ‘Sustained Economic Growth,’ ‘Aspiration Fulfilment,’ and ‘Sabka Saath, Sabka Vikas,’ the budget aims to combat India’s dependence on foreign shipping lines as India spends an estimated Rupees Six lakh crore in annual freight payments. It highlights a new policy trajectory for India where structural integrity and supply chain are prioritised by envisioning a maritime ecosystem rather than treating ports as separate assets. The budget seeks to operationalise India’s capacity by building on the ₹69,725 crore revitalisation package (September 2025) that targets India’s share of global shipbuilding. Additionally, the Maritime Development Fund (₹25,000 crore) and other measures grant infrastructure status to commercial vessels. This creates the capital backbone for India’s maritime sector.


India’s port capacity has nearly doubled from about 1,400 MMTPA to approximately 2,762 MMTPA with a remarkable reduction in turn-around time. Furthermore, legislations such as the Merchant Shipping Act and the Indian Ports Act aim to modernize outdated laws and align Indian maritime regulations with international standards while the new Coastal Shipping Act recognizes coastal shipping as an essential transportation mode. Inland waterways have also seen remarkable growth in cargo movement, showcasing their potential as a cost-effective transport medium with the National Waterway 1 along the Ganga-Bhagirathi-Hooghly route already commercially viable, while 32 of the recognised 111 nationwide National Waterways identified by the Inland Waterways Act, 2016 have been operationalised. 


This comes in the light of the Sagarmala 2015, which focuses on port-led development for industrial growth by investing $213 billion encompassing 415 projects focused on key areas of modernisation, connectivity enhancement, industrialisation led by ports and coastal community development. By generating over $2.7 billion in existing assets and creating two million jobs, the Sagarmala initiative, like many others, aligns with India’s Maritime Vision 2030 (launched in 2021). India’s maritime vision projects a blueprint for accelerated maritime growth through 150+ initiatives for India’s maritime industry. This also includes aligning India’s maritime growth with climate action and green initiatives by investing in sustainable practices. This is done through collaborations on green shipping corridors with international partners and the Green Tug Transition Programme and Harit Sagar Initiative, which align with India’s COP28 agreements and International Maritime Associations target of net-zero emissions by 2050. The water taxis in Mumbai and the zero-emission Cochin shipyard autonomous vessels highlight the successes of India’s sustainable maritime practices.


Moreover, the vision aims to bolster India’s shipbuilding capacity and position India among the top ten global shipbuilding nations by 2030, for which significant financial support is earmarked for domestic shipbuilding and repair infrastructure. This is in line with India’s Atmanirbhar Bharat Initiative with Production Linked Incentive (PLI) scheme which includes marine products contributing to India’s goal of becoming a global manufacturing hub with the indigenous aircraft carrier INS Vikrant showcasing India’s shipbuilding capacity and encouraging domestic manufacturing jobs. All of this focuses on indigenous job creation building on India’s contribution of 10% global maritime workers (making it the third global seafarer supplier) which is already boosted by the Sagarmala projects. 


Picture from Nautilus Shipping
Picture from Nautilus Shipping

This also enhances regional connectivity and bolsters economic trade. The agreements for maritime connectivity with fellow littoral countries, like with Sri Lanka and Maldives, help in mitigating political tensions using regional connectivity. Initiatives like the Indian Ocean Rim Association (IORA) and Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) foster cooperation and economic and cultural ties while establishing jobs. Regional collaborations such as the development of Sabang port in Indonesia or launch of Sittwe port in Myanmar underscore regional initiatives. Such regional initiatives are even more critical in view of India’s security concerns especially in the region owing to China’s String of Pearls policy. India’s counter using SAGAR and MAHASAGAR, which calls for security and growth for all in the Indo-Pacific region highlights the role of regional connectivity. India requires a robust maritime infrastructure development to counter China’s ambitious Maritime Silk Route, with China accounting for more than 40% of world’s shipbuilding capacity. Additionally, to combat supply chain vulnerabilities caused by the Ukraine War in 2014 and the periodic disruption through piracy and terrorism like the Houthi Attacks in Red Sea in 2021 or Suez Crises in 2020, India needs to reduce its dependence on global channels, focusing on domestic maritime development and structural soundness along with global cooperation with initiatives like India’s proposed IMEC corridor challenging China’s BRI.


India’s maritime AmritKaal 2047 expands on India’s maritime vision envisaging how India’s maritime industry will not only serve the national interest but also influence global trade in decades to come through green ports, sustainable shipping practices, smart logistics and cultural heritage projects, aligning economic growth with environmental responsibility and global leadership. In line with India’s Maritime AmritKaal, the budget for FY2026 supports development of a maritime ecosystem, encouraging domestic shipbuilding capabilities, economic growth through maritime industry and development of ports and inland waterways. Through the budget 2026, the government pivots to implementation, consolidating and advancing the reforms initiated in late 2025.


Picture from Nautilus Shipping
Picture from Nautilus Shipping

The first Kartavya highlighted in the budget focuses on India as a global manufacturing and industrial hub. Focusing on certain strategic and frontier sectors, the budget envisions industry as growth connectors, proposing seven high speed rail corridors between major industrial cities to spur economic activity.  It emphasises on multimodal integration through dedicated freight corridors. This aims to connect rail, road, inland waterways, and ports into a seamless logistics architecture through the proposed East-West link from Dankuni to Surat.


The budget 2026 uses multimodal networks that link inland waterways, mineral corridors, coastal shipping, and manufacturing policy; operationalises 20 National Waterways over the next five years including the NW-5 in Odisha which connects the mineral-rich belts of Talcher and Angul to Paradip and Dhamra ports. Constructing a hinterland-to-harbour pipeline that integrates mineral production zones with export gateways, the strategic importance is construed for such projects as it increases trade competitiveness and integrates Indian inland waterways to global market supply chains.


In line with increasing supply chain resilience and domestic shipbuilding capacity, ship repair facilities are also being planned at Varanasi and Patna along NW-1. Developing domestic capacity in this area will help India achieve its goal of becoming one of the top five global shipbuilding nations by 2047. The move aims at reducing lifecycle costs, enhancing fleet reliability, and improving the commercial viability of inland water transport. This addresses a longstanding inland capacity gap and builds local capacity for inland vessels and expands river-based transport. 


Thus, to help India reduce its dependence on container imports and foreign vessels for sustained and resilient value chains, a ₹10,000 crore Container Manufacturing Assistance Scheme was announced. Focused on increasing domestic manufacturing capabilities in the maritime sector over five years, the scheme aims to build sustained logistical architecture and green structures while increasing India’s global market share and trade competitiveness. 


The budget also launches the Coastal Cargo Promotion Scheme, which may seem ambitious as it intends to increase the share of inland waterways and coastal shipping from 6% to 12% by 2047 Maritime AmritKaal as the long-term objective. Supported by the Coastal Cargo Promotion Scheme, the gradual shift of heavy freight movement from road and rail to cost-efficient and green inland water transport is strategically critical. By emphasising on resilient and sustainable frameworks, the scheme could reduce cost, ease congestion and decrease the carbon footprint while focusing on resilience and enduring structural and logistical networks under the Maritime AmritKaal Vision 2047. 


The government also announced incentives under the Seaplane VGF Scheme for indigenous seaplane manufacturing and operations to improve last-mile connectivity and promote tourism in remote and island geographies. Aligning with India’s push for Atmanirbhar Bharat, the FY2026 budget is aimed at fostering self-reliance across container manufacturing, port development, inland waterways, logistics parks, and shipbuilding. It uses incentives through measures such as the Infrastructure Risk Guarantee Fund, which offers calibrated partial credit guarantees to lenders. It is not just an industrial incentive but also helps generate thousands of direct and indirect jobs. 


Picture from Nautilus Shipping
Picture from Nautilus Shipping

The Government has allocated ₹5,000 crore per proposed “City Economic Regions” (CERs), a new initiative to map cities based on specific growth drivers and the budget proposed over five years is to be implemented via a “challenge mode.”  To this end, the budget also offers extended tax benefits for units in Gujarat International Finance Tec-City International Financial Services Centre (GIFT IFSC) and Offshore Banking Units, with revised customs duty exemptions on vessels to encourage fleet expansion and domestic ownership.


Leading to creation of new and supportive industries in the maritime sector, such incentives help India integrate new solutions into its existing transport networks as India diversifies its transport mix. Reducing India’s vulnerability to external shocks in the wake of geopolitical uncertainties and tensions, the operational length of waterways has been extended from 2,716 km to more than 5,155 km, thereby easing congestion on road and rail networks. This is aimed to combat the growing cargo traffic which is increasing at a CAGR of 21%.


Additionally, with the central theme of Atmanirbhar Bharat, the budget invests in human capital and capacity building through the Regional Centres of Excellence focused on training and skill development in inland waterways and maritime operations. This allows for building a skilled workforce across riverine and coastal regions and will help in sustaining the long-term operationalisation of the envisioned maritime ecosystem. 


Under the third Kartavya — Sabka Saath, Sabka Vikas — the budget looks for expansion of such connectivity projects to eastern and northeastern India onto other cities of Kerala, Andhra Pradesh, and Tamil Nadu as well. Such projects are committed to interoperability and flexibility being developed not only as industrial corridors but tourism sectors while at the same time offering greener structures. The proposed development of an East Coast Industrial Corridor includes terminal upgrades and new waterways and rail-linked infrastructure worth over ₹830 crore in West Bengal. Underscoring the growing importance of the Hooghly corridor with a well-connected node at Durgapur (West Bengal), the budget announced the creation of five tourism destinations in five Purvodaya States. 


The Budget also proposes developing 15 archaeological sites as public destinations, including Lothal and Dholavira, highlighting India’s maritime heritage as a key strategic asset. Lothal hosts India’s National Maritime Heritage Complex (NMHC) in Gujarat, with an estimated area of 400 acres and a cost of ₹4,500 crore. The NMHC is being developed as a knowledge hub, advancing further research and learning under the Ministry of Ports, Shipping and Waterways (MoPSW), India. This will be critical in boosting India’s maritime heritage tourism and awareness while showcasing India’s long-standing engagement with maritime trade and navigation. Direct air connectivity to Lothal will be provided by the upcoming Dholera Greenfield International Airport for domestic and international tourists. 


Developmental efforts at sites like Lothal and Dholavira prompt strategic application of India’s growing leadership in maritime heritage preservation and community participation. The MoUs with countries such as Germany, the Netherlands, Vietnam, the United Arab Emirates, Oman, Thailand, and Portugal underscore the strategic and extensive relevance of the NMHC through international collaborations and tourism. It links India’s ancient seafaring traditions with its maritime ambitions by strengthening cultural identity and exchange and supporting research and education.


In the Union Budget 2026-27, the MoPSW has been allocated ₹5,164.8 crore, a 48% increase from the FY 2025-26 Budget Estimate of ₹3,471 crore. Building upon India’s pre-existing initiatives of Atmanirbhar Bharat, Vision 2030, MAHASAGAR and SAGAR, and the September 2025 shipbuilding revitalisation package, amongst others, Budget 2026 highlights the growing role of India’s maritime industry as a key driver for India’s economic growth. It signals a shift from policy trajectory to implementation strategy focused on improving pre-existing multimodal structures while developing and operationalising new interoperable structures. The budget signals the emergence of a coherent maritime-industrial strategy combining supply-side capacity building, demand generation through freight diversification, ecosystem support via repair and container manufacturing, and alignment with decarbonisation goals. This is done keeping in mind the challenges of global supply chain, sustainability, economic cost and foreign dependency reduction aligning with the Maritime AmritKaal Vision 2047. 


Antra Gupta


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Antra Gupta is currently an Intern at Meluha Maritime. She graduated in Political Science (Hons.) from Delhi University and is a postgraduate student of International Relations and Strategic Studies at the University of Mumbai. She has published a paper on Japan and South Korea’s nuclear Latency with the Indian Council of World Affairs in 2025. She has worked with CPRG, Girls Count and volunteered at Sagarmanthan: The Great Oceans Dialogue. Antra is passionate about security and maritime studies and international policy working on non-traditional security.

 
 
 

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