The government is reportedly considering relaxing localisation requirements and linking subsidy payments to domestic content levels as it seeks to strengthen India’s shipbuilding industry.
Highlights
- India may relax domestic content requirements for shipbuilding projects.
- The proposed changes aim to accelerate shipyard development and attract foreign investment.
- The Shipping Ministry may remove the requirement for an in-principle No Objection Document (NOD).
- Shipbuilders meeting 20% domestic content requirements could receive 75% of the subsidy.
- Full subsidy payments may be available upon achieving 40% localisation.
- The proposed changes could help India compete more effectively in the global shipbuilding market.
India May Ease Make in India Rules to Accelerate Shipbuilding Growth
New Delhi, November 7: India is reportedly considering relaxing some of its Make in India requirements for the shipbuilding industry as the government seeks to accelerate domestic manufacturing, attract foreign investment and strengthen the country’s position in the global maritime sector.
According to a report by The Economic Times, the proposed changes would ease domestic content requirements for shipbuilding projects while introducing a more flexible subsidy structure. The move is aimed at encouraging faster development of shipyards and reducing regulatory hurdles for investors.
Domestic Content Requirements May Be Relaxed
Under the proposed framework, shipbuilders could benefit from a relaxation in domestic content mandates. The government is reportedly considering a subsidy mechanism linked to the level of localisation achieved by manufacturers.
Shipbuilders achieving 20% domestic content could become eligible for 75% of the applicable subsidy. Meanwhile, projects reaching 40% localisation could qualify for the full subsidy amount.
The proposed structure would provide greater flexibility to companies that rely on imported components, machinery and technology during the initial stages of shipbuilding operations.
Focus on Faster Development and Foreign Investment
The government is also reportedly considering removing the requirement for an in-principle No Objection Document (NOD) from the Shipping Ministry.
This regulatory relaxation could simplify project approvals and reduce delays, making India a more attractive destination for international shipbuilders and maritime investors.
Foreign investment is expected to play an important role in expanding India’s shipbuilding capacity, particularly in areas requiring advanced manufacturing technologies and specialised equipment.
Strengthening India’s Global Shipbuilding Ambitions
India has been working to expand its domestic shipbuilding capabilities as part of its broader maritime development strategy. However, establishing globally competitive shipyards requires significant investment, advanced technology and access to international supply chains.
Strict localisation requirements can create challenges for manufacturers, especially when certain specialised components are not readily available domestically.
By adopting a more flexible approach, the government could encourage international partnerships, technology transfers and faster capacity expansion.
The proposed changes could also support employment generation and create business opportunities for domestic suppliers of steel, engineering equipment and maritime components.
If implemented, the measures could mark an important shift in India’s shipbuilding strategy, balancing the long-term objective of domestic manufacturing with the immediate need for investment, technology and global competitiveness.
