[Economics] INDIA BUDGET India to set up $3-bln maritime development fund for shipping industry

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NEW DELHI, Feb 1 (Reuters) - India will set up a 250-billion-rupee ($2.9-billion) maritime development fund for the long-term financing of the country's shipbuilding and repair industry, Finance Minister Nirmala Sitharaman said on Saturday. The South Asian nation is spending billions of dollars to refurbish infrastructure in an effort to become a world-class manufacturer as Prime Minister Narendra Modi aims for India to be a developed nation by 2047.The government will contribute 49% of the fund and mobilise the remainder from ports and the private sector, Sitharaman in presenting budget proposals for the fiscal year from April 1. India's shipping fleet has not kept pace with its surge in trade, including imports of energy and exports of refined oil products. The government plans to set up a new shipping company with participation from oil refiners and Shipping Corp of India to expand its fleet to cut freight payments to foreign carriers, Reuters reported last yearShipping Corp's shares rose 3.8% after the budget announcement. The governments will also promote shipbuilding clusters to increase the range, categories and capacity of ships, Sitharaman said. "This will include additional infrastructure facilities, skilling and technology to develop the entire ecosystem." India will also issue credit notes for shipbreaking in Indian yards to incentivise the scrapping of old vessels and building of new ones.Nidhi Verma is an award-winning journalist working with Reuters. Presently, she is working as Team Leader-Energy in India. She has more than two decades of experience in covering India and global energy sector. Her stories show a new dimension of the energy sector, the nuances of the oil trade, the role of geopolitics and the diplomatic efforts that a country makes to mitigate the impact of external shocks.

https://www.reuters.com/world/india/india-budget-india-set-up-3-bln-maritime-development-fund-shipping-industry-2025-02-01/