Govt plans to add 100 more new vessels to merchant fleet in next five years: Sonowal

New Delhi: The Government plans to add 100 more new vessels to its merchant fleet over the next five years to cut USD 75 billion in freight bills, Shipping Minister Sarbananda Sonowal said on Tuesday.

Currently, India has a merchant fleet of 1,600 seagoing ships.

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Addressing a press conference after the Sagar Samvad event, Sonowal said the National Shipping Board (NSB), established in 1958 and older than the ministry it advises, is tasked with ensuring that India's shipping policy is formulated only after listening to the voices of those who sail, own, and fund the industry.

Sonowal also acknowledged the success of the Container Manufacturing Assistance Scheme worth Rs 10,000 crore, with global shipping major Maersk now ordering containers built on Indian soil.

The minister said India's maritime sector has the potential to become a major engine of employment for the young workforce and position India as the world's leading supplier of skilled seafarers.

"We are expanding quality training capacity, with steps taken to strengthen industry-led skilling, create wider employment pathways, address gender disparity and equip our workforce with skills for emerging segments such as cruise shipping and advanced shipbuilding," he said.

A skilled and future-ready maritime workforce will be central to achieving the Maritime India Vision 2030 and building India's shipbuilding capabilities under Maritime Amrit Kaal Vision 2047, he added.

During the 'Sagar Samvad' event, panellists said flying the Indian flag remains 16 per cent to 20 per cent costlier than operating under a foreign one, a gap they attributed to India's tax on ship imports and maintenance services, tax deducted at seafarers' wages, tax on freight and higher domestic capital costs, expenses foreign competitors do not carry.

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Yet under the sector's Right of First Refusal mechanism, Indian owners are still expected to match foreign freight rates to win cargo, the panel said.

Speaking at the event, Union Minister Mansukh Mandaviya emphasised that India must leverage the expanding global demand for skilled maritime professionals to create high-quality employment opportunities for its growing youth population.

He pitched for coordinated efforts among the government, maritime industry, trade bodies and training institutions to expand training capacity, strengthen market outreach for Indian seafarers and build future-ready skills.

Mandaviya also stressed the need to address gender disparity in maritime employment, develop specialised talent for emerging segments such as cruise shipping and create a skilled workforce capable of supporting India's ambition to become one of the world's leading shipbuilding nations.

NSB is a statutory advisory body under the Merchant Shipping Act, 2025, that counsels the government on shipping policy, tonnage, seafarer welfare and port-linked maritime development.

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