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Shares of shipping companies surged up to 6 per cent on Monday after the Indian government announced a significant policy decision to grant infrastructure status to large ships.

This move is expected to provide a fresh boost to the shipping sector as it will likely reduce the financial burden on Indian shipping companies and help them compete more effectively in the global market.

As of 3 pm, major shipping stocks were trading higher, indicating strong attention from investors. The key shipping stocks that rallied includes:

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1) Cochin Shipyard: trading upside around 1.3 per cent

2) Garden Reach Shipbuilders & Engineers (GRSE): inched nearly 3 per cent. 

3) Shipping Corporation of India (SCI): trading in green, around 4 per cent up

4) Swan Defence and Heavy Industries: advanced nearly 5 per cent.

5) Essar Shipping: trading up around 4.23 per cent.

The government's Ministry of Finance notified an updated Harmonized Master List of Infrastructure sub-sectors on September 19, 2025, which includes "Large Ships" under the Transport and Logistics category. 

According to the official notification, the shipbuilding companies will now find it easier to secure loans from banks and will benefit from reduced interest rates. All benefits associated with infrastructure financing will now be extended to these shipbuilding enterprises.A historic decision has been taken to strengthen India's maritime sector… the government now recognises large ships as infrastructure. pic.twitter.com/aVjKwrG2ng

— PMO India (@PMOIndia) September 20, 2025

The government has updated the Harmonized Master List of Infrastructure Subsectors for the first time since October 2022. With the inclusion of large ships under infrastructure, the classification will enable fleet owners to use large ships as collateral for loans and access cheaper, long-term financing.

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1) Indian-owned and flagged: Commercial vessels with a gross tonnage of 10,000 or more.

2) Indian-built, owned, and flagged: Commercial vessels with a gross tonnage of 1,500 or more.

As per official records, to make India a major maritime power, ease financial support for the shipbuilding sector, help shipyards adopt modern technology, and improve design and quality standards, the government is working on three major schemes.

Earlier, PM Modi also announced in an event that over Rs 70,000 crore will be invested in these schemes in the coming years.

He also stated that India currently accounts for 10 per cent of global maritime trade. Industries such as steel, machinery, electronics, textiles, paints, and IT systems are all supported by the shipping sector. This creates significant benefits for small and medium enterprises (MSMEs).

Citing research, the PM stated that every rupee invested in shipbuilding generates nearly double the economic return.

He added that every job created in a shipyard leads to six to seven new jobs in the supply chain, meaning 100 shipbuilding jobs can result in over 600 jobs in related sectors, which underscores the massive multiplier effect of the shipbuilding industry.

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Currently working as a trainee Sub-Editor at Zee Business, Shristi Rani is passionate about storytelling and delivering content that engages diverse audiences across digital platforms.

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