Industry & Market Landscape

Global Outlook – Maritime & Infrastructure Finance

The global maritime sector is undergoing a phase of accelerated transformation, driven by rising trade volumes, evolving geopolitical dynamics, and the increasing need for resilient and sustainable supply chains. With a significant share of future population growth concentrated in Asia and Africa, the demand for efficient port infrastructure, enhanced shipping capacity, and integrated logistics networks is expected to expand substantially.

At the same time, the sector is being reshaped by a combination of structural and regulatory shifts, including: • Stricter environmental regulations and global decarbonization mandates • Realignment of trade routes and supply chains • Increasing emphasis on operational efficiency, resilience, and cost optimization

These developments are reinforcing the strategic importance of maritime infrastructure as a critical enabler of global economic growth.

Within this evolving landscape, the global shipbuilding industry is experiencing a cyclical upturn, supported by:

However, global shipbuilding capacity remains highly concentrated. China, South Korea, and Japan together account for nearly 93% of total capacity, underpinned by strong industrial ecosystems and access to long-term, cost-effective financing. This concentration highlights the importance of robust financing frameworks in sustaining maritime competitiveness.

Looking ahead, global infrastructure financing requirements are expected to rise significantly, driven by:

In response, a wide range of financial institutions—including Development Finance Institutions (DFIs), sovereign-backed lenders, export credit agencies, and infrastructure funds—are increasingly directing capital toward:

In this context, access to structured, long-term, and sector-specific financing has emerged as a critical enabler of maritime growth.

Against this global backdrop, India’s maritime sector presents both significant opportunities and structural challenges.

Indian Maritime Landscape

India’s maritime sector is central to its economic growth, handling nearly 95% of trade by volume and 70% by value. With over 11,098 km of coastline, 12 major ports, and more than 200 non-major ports, the country is strategically positioned along key global trade routes and is steadily advancing toward becoming a global maritime and logistics hub.

This transformation is supported by a robust policy framework, including the Sagarmala Programme, PM GatiShakti, National Logistics Policy, Maritime India Vision 2030, and Amrit Kaal Vision 2047—collectively focused on enhancing port capacity, strengthening connectivity, and enabling port-led industrialization.

Despite these advantages, the sector continues to underperform relative to its potential. While maritime trade volumes are significant, India’s share in global shipbuilding and vessel ownership remains limited. This gap is driven by structural constraints, including:

A critical underlying constraint is the limited availability of long-term, sector-specific financing. Maritime projects are capital-intensive and characterized by long gestation periods, requiring financial structures that conventional lenders are often unable to provide. This has constrained investment flows and slowed the pace of sectoral development.

At the same time, evolving global dynamics—particularly supply chain realignments and capacity constraints in established maritime economies—present a significant opportunity for India. Supported by a strong policy push and increasing focus on infrastructure and manufacturing, the sector is well-positioned for expansion, provided financing constraints are effectively addressed.

To unlock this potential, the Government of India has introduced a series of targeted initiatives to strengthen infrastructure, build capacity, and improve access to financing across the maritime ecosystem.

Policy Support and Financing Imperative

To accelerate sectoral development, the Government of India has introduced a series of targeted initiatives aimed at infrastructure expansion, shipbuilding capacity enhancement, and improved access to financing. Key initiatives include:

Scheme Table
Scheme / Initiative Outlay / Scale Key Objective
Sagarmala ProgrammeMulti-project programmeEnhance port capacity, connectivity, and reduce logistics costs
Sagarmala 2.0 (2026–2035)Multi-sector programmeStrengthen shipbuilding, repair, recycling, and maritime manufacturing
Maritime Development Fund (MDF)~₹25,000 croreProvide structured capital and crowd in private investment
Shipbuilding Financial Assistance Scheme (SbFAS)~₹24,000+ crorePromote domestic shipbuilding through grant-based incentives
Shipbuilding Development Scheme (SbDS)~₹1,443 croreProvide credit risk coverage and improve project bankability
Interest Incentivization Fund (IIF)₹5,000 croreLower borrowing cost and enhance financial viability of projects

These initiatives reflect a strong and sustained policy commitment to maritime sector development.

However, their effective implementation requires a dedicated financial mechanism capable of aligning capital with the sector’s unique requirements. Given the capital-intensive and long-gestation nature of maritime projects, access to structured, long-term financing remains critical to unlocking investment and ensuring timely execution. While policy support remains strong, structural challenges continue to constrain execution.