Vivek Merchant, Director, Swan Defence and Heavy Industries Limited.
Credit: Special arrangement.
Finance Minister Nirmala Sitharaman will present the consecutive 8th Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.
As we fast approach the presentation of Union Budget, Vivek Merchant, the director of Swan Defence and Heavy Industries Limited talked about the shipping industry and stated it is of the utmost importance for the Budget to prioritise investments in shipbuilding infrastructure
"The Indian government’s emphasis on improving shipping infrastructure and promoting indigenous shipbuilding has significantly transformed the sector. India holds a mere 0.05 per cent of the global market share in shipbuilding, in stark contrast to China (47 per cent), South Korea (30 per cent), and Japan (17 per cent), which currently dominate the industry," he said.
"Therefore, new government initiatives and improved budgetary allocations for ports and shipyards could be game changers, showcasing a clear vision for a robust maritime economy.
"The announcement of India’s Maritime Development Fund (MDF) for long-term indigenous manufacturing projects and the anticipated Shipbuilding Subsidy (SBS) Policy 2.0 could further strengthen the ecosystem, encouraging greater self-reliance and competitiveness.
"As we approach 2025, it is crucial for the Union Budget to prioritize investments in shipbuilding infrastructure, incentivize green technologies, and create export opportunities for Indian shipyards," he added.
Merchant also talked about Swan's pivot towards sustainability stating, "As the global maritime industry pivots toward sustainability, Swan’s Shipyard is prioritising the development of eco-friendly ships with hybrid propulsion systems.
"Our facility is equipped to handle advanced fabrication projects while adhering to stringent quality standards. India’s commitment to reducing its carbon footprint and embracing green technologies will define the next decade of maritime growth. At Swan, we are proud to contribute to this journey by building a sustainable and self-reliant shipbuilding ecosystem."