India to offer incentives to bolster shipbuilding industry

A roll-on-roll-off ship in open seas. Picture: 123RF/kamchai95

This could also include incentives to build small vessels and promote battery-driven small vessels, aiming to cut diesel consumption and carbon emission by ships in the coming years, they said. Details are, however, subject to change as budget consultations are ongoing, the official said, noting the plans had the support of economic advisers of Prime Minister Narendra Modi, who unveiled Maritime Vision-2030 in 2020, aiming to expand domestic shipping and ports capacity.

The cost of ship manufacturing was up to 20% lower in India compared to Indonesia and the Philippines, the panel said, suggesting a review of tax rules. India’s exporters and importers paid nearly $100bn in freight last year, almost double the amount three years ago, FIEO director-general Ajai Sahai said, adding that exports and imports had surged along with freight rates.

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