“The Shipyards Association of India has been strongly advocating an increase in BCD on these vessels to foster shipbuilding industry in India,” said Sahay Raj, President, Shipyards Association of India (SAI).
“This is a very welcome move and reflects the government’s commitment to promote shipbuilding in India by incentivization which will prove a booster for all shipyards. As India sets out to become one of the top five shipbuilding nations within a decade, it would be prudent that BCD increase on vessels be announced at the earliest,” Sahay Raj said.
The issue was discussed at the Global Maritime India Summit held in October in which all stake holders, including officials from the Ministry of Ports, Shipping, and Waterways, think tanks, foreign experts and member shipyards of the SAI participated.
“The Ministry’s move to increase BCD on vessels will not only promote shipbuilding in India but also encourage Indian shipyards to venture out and compete in the global markets to bag more and more shipbuilding contracts,” said Arjun Chowgule, Vice President, SAI.
“The proposed increase in BCD will help rebalance the Indian economy in a sustainable manner through the development of its manufacturing sector. It is going to be a game changer to achieve the ambitious shipbuilding targets envisaged by Prime Minister Narendra Modi in the Maritime Amrit Kaal Vision 2047,” Chowgule added.
The Indian shipbuilding industry accounts for less than 1 percent of the global share.
The government has identified shipbuilding as one of the key sectors under the ‘Make in India’ initiative.
However, despite the fiscal and non-fiscal measures introduced by the government, Indian shipyards face stiff competition in the domestic market as there is no protection against foreign shipyards due to the absence of tariff barriers.
Ships made in Indian shipyards cost at least 35 percent more than those built in foreign yards due to the lack of access to long-term, low-cost funds, according to the Maritime Amrit Kaal Vision 2047.
