25,000 Crores For Maritime Development Fund: Union Budget 2025

Pragya Pathak

Author

Updated: 16-04-2025 at 12:34 PM

The whole economy of India is made up of several sectors and one of those sectors is the maritime. All the nation must have a strong maritime sector so that it can contribute toward boosting the nation’s economic and trade landscape. Fortunately, India has been blessed with a vast coastline however, the sector still faces several challenges including limited finances, underdeveloped coastal networks, etc.

To change this scenario and fill the gaps that are hindering the growth of the maritime sector, the Union Budget of 2025 has a special provision for the sector that would provide it with the help it always needed and wanted.

Read the news article to know more about the details of the newest announcement and the impact it will have on the whole country.

Maritime Sector On Budget 2025

The Finance Minister of India, Smt Nirmala Sitharaman has made a major announcement that would have a great and lasting impact on the maritime sector.

Maritime Development Fund (MDF)

Funds worth Rs. 25,000 crores have been allocated and deposited in the Maritime Development Fund (MDF). This budget would help in changing the existing landscape of the sector by allowing it to build indigenous ships and other blue water infrastructure projects.

Benefits Of The Maritime Development Fund (MDF)

The Maritime Development Fund has various benefits that would positively impact the sector. Some of its key expected benefits are mentioned below for one’s better understanding and reference:

The government is planning to contribute up to 49% of the fund and mobilise the rest from the private sector.
The fund will finally allow the sector to build ships and other related infrastructure for the efficient working of the sector. This would help the sector in getting on the path of becoming a global hub for manufacturing.
The improved infrastructure will help the sector in organising meets and roadshows in various developed countries like the U.S.A., Europe, and other key Asian markets. This would help in attracting pension and other wealth funds which can later be added to the maritime fund.

Impact Of The Maritime Development Fund

As of now, India spends around $75 billion on rental ships from abroad while it owns only 2% of the world’s total tonnage and around 1500 odd ships. The existing global market of maritime is currently dominated by countries like China, South Korea, and Japan.

MDF is expected to change this existing condition of the maritime sector of India and revamp the whole sector from scratch.

The Maritime Fund would also help promote the development of cruise tourism in the country which would not only help in building the necessary infrastructure for it but also in attracting tourism to the nation.

Conclusion

The Union Budget of 2025 has allocated a generous fund of 25,000 crores to the Maritime Development Fund for the growth and development of the maritime sector of the nation.

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