India’s maritime sector is set for a transformative boost as the Ministry of Ports, Shipping, and Waterways unveils two ambitious shipbuilding programs worth ₹44,700 crore. The Shipbuilding Financial Assistance Scheme and the Shipbuilding Development Scheme are designed to fortify domestic shipbuilding capacity and enhance global competitiveness. These initiatives come at a critical juncture, as the industry grapples with the dual imperatives of economic growth and environmental sustainability.
The Shipbuilding Financial Assistance Scheme will provide financial assistance of 15-25% for each ship, with a total budget of ₹24,736 crore. This scheme aims to support shipbuilding projects worth ₹96,000 crore, introducing graded support for small, large, and specialised vessels. The disbursement of funds will be linked to defined milestones, ensuring accountability and progress. Meanwhile, the Shipbuilding Development Scheme, with a budget of ₹19,989 crore, focuses on developing greenfield shipbuilding clusters and modernising existing brownfield shipyards. Both schemes will remain valid until FY36, providing a long-term vision for the industry.
The substantial outlay of these schemes is expected to benefit several key players in the shipbuilding industry. Mazagon Dock, India’s oldest and largest defence shipyard, is poised to be a significant beneficiary. As the principal partner of the Indian Navy, Mazagon has a proven track record in constructing complex warships and conventional submarines. The company’s full-spectrum capability, encompassing destroyers, frigates, submarines, and other vessels, positions it as a flagship beneficiary of the new schemes.
Mazagon’s commitment to indigenization is a cornerstone of its strategy. The company has increased indigenous content from 42% in older destroyers to 75% in the current P-17A frigates, aiming for 80% or more in upcoming programs. This focus on indigenization aligns with the ‘Make in India’ initiative and underscores the company’s role in driving the Atmanirbhar Bharat vision.
With an order book of ₹27,415 crore as of September 2025 and a revenue visibility of nearly three years, Mazagon is well-positioned to capitalise on the new schemes. The company is also eyeing a major ordering cycle, with a pipeline exceeding ₹3 lakh crore. This includes negotiations for additional Scorpene submarines, the P-75(I) project, and various surface ship programs. To meet these demands, Mazagon has devised a 10-year capex roadmap worth ₹18,000 crore, including the development of a new greenfield shipyard in Thoothukudi.
Garden Reach Shipbuilders & Engineers (GRSE) is another key player set to benefit from the new schemes. GRSE has evolved into a technology-driven maritime solutions provider, capable of constructing a wide range of surface combatants. The company’s balanced revenue profile, derived from shipbuilding, ship repair, engineering, and engine divisions, provides stability and growth potential.
GRSE’s order book stands at ₹20,205 crore, offering revenue visibility for over four years. The company is executing several high-value programs, including P-17A frigates, ASW shallow water craft, and next-gen offshore patrol vessels. GRSE is also a strong contender for upcoming naval contracts, with the potential to secure orders worth approximately ₹1.8 lakh crore. The company is investing in Shipyard 4.0 and next-generation platforms, including autonomous systems and sustainable technologies like electric and hydrogen fuel-cell vessels.
Cochin Shipyard, a premier maritime institution, is another major beneficiary of the new schemes. With a history of building complex vessels, including India’s first Indigenous Aircraft Carrier, INS Vikrant, Cochin Shipyard is a leader in both shipbuilding and ship repair. The company’s order backlog of ₹21,100 crore provides revenue visibility for 4–5 years, dominated by defence contracts such as the NGMV project and the ASW-SWC program.
Cochin Shipyard is also working on a defence pipeline worth ₹2.2 lakh crore, indicating significant growth potential. The company’s focus on structural transformation to reduce cyclicality and dependence on single major projects underscores its strategic vision and adaptability.
The new shipbuilding programs are a game-changer for India’s maritime sector, providing a substantial boost to domestic shipbuilding capacity and global competitiveness. The financial assistance and development schemes will de-risk the yard lifecycle, fostering innovation and growth. As key players like Mazagon Dock, Garden Reach Shipbuilders & Engineers, and Cochin Shipyard capitalise on these opportunities, the industry is po