By Martin Shwenk Leade

Copyright indiatimes

PM Modi flags nearly 75 billion dollars shipping bill outflow that equals defence spend, calls for Atmanirbhar

Prime Minister Narendra Modi on Saturday said India is paying nearly ₹6 lakh crore annually to foreign companies for shipping its goods across the world, a figure almost equal to the country’s defence budget.Addressing a public rally in Bhavnagar, Modi said the nation’s dependence on foreign ships is a result of decades of “misgovernance” by Congress governments, which neglected India’s shipbuilding capabilities despite its strong maritime legacy.“The shipping sector is one of the major examples of the loss our nation had to bear. India was a global maritime power for a very long time. We were the biggest shipbuilding centre in the world… We used India-made ships just 50 years ago. But instead of focusing on shipbuilding in India, they prioritised paying rent to foreign ships. Shipbuilding ecosystem collapsed in India. Today, India pays around 75 billion dollars or around Rs 6 lakh crores to foreign shipping companies as rent for shipping services. It is almost as high as India’s defence budget,” Modi said.The prime minister stressed that India must become Atmanirbhar (self-reliant) in the shipping sector to strengthen its economic sovereignty. “Bharat mein samarthya ki koi kami nahi hai, lekin azadi ke baad, Congress ne Bharat ke har ek samarthya ko nazar-andaaz kiya,” he said.He blamed successive Congress governments for entangling the country in the “license-quota raj” and later embracing import dependence during globalisation, which he alleged led to scams worth thousands of crores and prevented India’s true potential from being realised.Live Events“India has no shortage of potential, but after independence, Congress ignored all of India’s strengths. Therefore, even after 6–7 decades of independence, India has not achieved the success it deserved,” Modi added.The remarks come amid the government’s recent push to revive domestic shipbuilding and port infrastructure as part of its broader Atmanirbhar Bharat agenda.Large ships accorded infra statusThe government accorded the infrastructure status to “large ships”, bolstering the prospects of easier and cheaper financing for ship-building in India.This decision marks a significant policy shift aimed at reviving India’s shipbuilding ecosystem. While shipyards had long enjoyed this designation, large ships themselves were excluded, leaving Indian shipping companies struggling to access affordable credit.By including large vessels in the harmonised master list of infrastructure sub-sectors under transport and logistics, the government has effectively unlocked easier access to cheaper, long-term financing. Experts say the move will allow large ships to be treated as collateral for loans and make such projects eligible for tax incentives, reducing capital costs and encouraging private participation in shipbuilding.The new definition categorises large ships as commercial vessels with a gross tonnage of 10,000 or more, provided they are under Indian ownership and flag. Smaller vessels with gross tonnage of 1,500 or above will also qualify if they are built locally.The policy push aligns with the government’s broader Maritime India Vision 2030, which highlights financing bottlenecks as one of the main hurdles for domestic shipowners. Indian shipping companies currently face difficulties in expanding fleet tonnage, forcing dependence on foreign vessels to carry nearly 90% of India’s trade.As part of the Budget 2025–26, the government also announced a ₹25,000 crore Maritime Development Fund (MDF) to directly finance ship acquisition. The MDF is expected to generate around ₹1.5 lakh crore investment in the sector by 2030 and boost Indian-flagged ships’ share in global cargo to 20% by 2047.Add as a Reliable and Trusted News Source Add Now!
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PM Modi flags nearly 75 billion dollars shipping bill outflow that equals defence spend, calls for Atmanirbhar

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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onIndia shipping foreign firmsdefence budget IndiaIndian shipbuilding ecosystemPM Modi shipping commentsMaritime India Vision 2030shipbuilding in IndiaAtmanirbhar Bharat initiative(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless