India Shipbuilders Seek Subsidies

The Economic Times April 16, 2012

India's Shipping Ministry looks for revival of subsidy scheme for nation's shipbuilders

Concerned over India's declining market share in global shipbuilding that currently stands at a meagre 0.01 per cent, the Shipping Ministry has sought immediate policy measures including revival of subsidy sceme for shipbuilders, according to a report in the Economic Times.

In an official statement the Shipping Ministry says that China, Korea and Japan have emerged as leaders, while Taiwan, Vietnam and Brazil and Brazil are also entering the market. The (Indian) industry is at such a stage today that it needs support in the form of shipbuilding subsidy as well as other measures.

The ministry has argued that ever since the subsidy scheme expired, India's share is declining and has come down to 0.01 per cent from 1.24 per cent.

Apart from asking for direct fiscal support through provision of subsidy initially for five years, the ministry has also sought indirect support through exemption of import duty for capital equipment, withdrawal of excise duty on vessels sold in domestic tariff are and service tax exemption for the industry.