India Launches Credit Risk Insurance to Boost Shipbuilding Sector

On October 13, 2026, the Ministry of Ports, Shipping and Waterways unveiled two innovative credit risk insurance programs designed to strengthen India’s shipbuilding industry. The announcement was made during the closing session of the 21st Maritime State Development Council (MSDC) meeting held in Mumbai.

Union Minister Sarbananda Sonowal introduced the Shipbuilding Project Credit Risk Insurance Policy (SbPCP) and the Business Credit Shield Policy Shipbuilders (BCSPS). These insurance products are part of the National Shipbuilding Mission and have been developed by ECGC Ltd and The New India Assurance Co Ltd respectively. The SbPCP will provide coverage for export-related shipbuilding projects, while the BCSPS is aimed at securing domestic ship manufacturing ventures.

Minister Sonowal highlighted that the government will subsidize insurance premiums to ease the financial burden on shipyards. Additionally, the government will offer direct support to insurance companies if claims are filed by shipbuilders. This approach is expected to help the shipyards navigate financial difficulties that can arise from delayed payments or unpredictable shifts in the global market.

Shipbuilding is a complex, long-term process involving numerous stages and substantial investment. A delay in any milestone payment can jeopardize the entire project and disrupt shipyard operations. These new insurance policies are designed to provide a safety net, allowing shipbuilders to focus on their core expertise without fearing financial interruptions.

Sonowal stated, "Building a ship is a massive, multi-year journey, a single missed milestone payment could stall an entire shipyard’s operations. With these new insurance policies, we are stepping in to give them a real safety net. We want our shipyards to focus on what they do best, building world-class vessels, without the fear of delayed payments or sudden global market shifts holding them back."

The 21st MSDC meeting marked a significant milestone as the first assembly since the Council was granted statutory status under the Indian Ports Act, 2025, effective from May 15, 2026. Established originally in 1997, the MSDC now carries an enhanced mandate to foster integrated maritime development, harmonize policy initiatives, and advance maritime infrastructure planning across India.

During the session, members endorsed the National Perspective Plan’s priorities and called on states to accelerate multimodal connectivity projects. This includes road, rail, inland waterways, pipelines, and conveyor systems that link ports with industrial hubs. The Council also urged coordinated efforts between states and the Ministry of Ports, Shipping and Waterways (MoPSW) to develop port-linked industrial clusters featuring ready-to-use infrastructure and streamlined approval processes. These initiatives aim to complement ongoing port capacity expansions and enhance connectivity.

In addition to the insurance announcements, Minister Sonowal introduced the Ready Reckoner for Implementing One Nation One Port (ONOP). This comprehensive guide facilitates the execution of ONOP policies in both major and non-major ports. It consolidates relevant circulars issued by various central ministries, including the Central Board of Indirect Taxes and Customs (CBIC), Ministry of Home Affairs, and Ministry of Health and Family Welfare. The document clarifies the roles and responsibilities of state and Union Territory governments in accelerating ONOP implementation.

Sonowal reflected on the MSDC’s evolving role, saying, "The MSDC has now entered a new statutory phase, strengthening cooperative federalism in maritime governance. With the adoption of MIV 2030 and MAKV 2047 targets, India’s ports and shipping sector will be future-ready, competitive and aligned with global standards. The Council’s resolutions today mark a decisive step towards integrated maritime growth and port-led industrialization." These targets refer to the Maritime India Vision 2030 and Make in India for the Maritime Sector 2047 initiatives, which seek to develop a sustainable and globally competitive maritime economy.

The introduction of these credit risk insurance policies comes at a crucial time for India’s maritime industry. Globally, shipbuilding faces challenges such as fluctuating demand, supply chain disruptions, and financial uncertainties. By offering tailored insurance solutions and promoting coordinated infrastructure development, the Indian government aims to position its shipbuilding sector for long-term growth and resilience.

These efforts align with broader economic objectives to enhance manufacturing capabilities and promote export competitiveness. The maritime sector, a key driver of trade and economic activity, stands to benefit significantly from these policy measures, which could attract investment and create employment opportunities across the shipbuilding ecosystem.