Opinion India’s ambition to lead global shipping sector’s green transition is on a strong footing

A Bold Investment

That leadership intent is evident in the Modi government’s recent approval of a Rs 69,725 crore ($8 billion) package to reimagine, revive, and rejuvenate India’s shipbuilding and maritime ecosystem. This is not a routine budget line, but a signal of ambition. By investing at scale, the Modi government has sent a message that India will play a meaningful role in the global shift to low-carbon shipping. It will be a pace-setter.

This historic decision sets the stage for a maritime renaissance — a return to the spirit of seafaring enterprise that once defined Bharat’s trading heritage. It also aligns seamlessly with PM Narendra Modi’s vision of Viksit Bharat by 2047 — a confident, capable nation that anchors global trade routes, not merely services them.

The Global Tide Is Turning

The International Maritime Organisation (IMO) has set a clear course toward net-zero emissions by 2050. Europe has already moved from words to enforcement — its carbon market now charges ships for emissions, and the FuelEU Maritime regulations tighten fuel standards each year.

The direction is unmistakable: Alternative fuels such as green ammonia and methanol are shifting from pilot projects to purchase orders. This is the moment when policy leaves its footprint on the market, which, in turn, creates momentum. India’s advantages — low renewable energy costs, engineering expertise, and skilled seafarers — can convert that momentum into a meaningful market share.

India’s renewable power tariffs, discovered by the Solar Energy Corporation of India (SECI), are among the lowest globally — around Rs 2 per kilowatt hour. That translates into competitively priced green fuels. Recent bids for green ammonia have settled near Rs 52 per kg, placing Indian production costs below $650 per tonne — cheaper than many established export hubs.
This price advantage is not theoretical. Asian shipping lines and European buyers are already negotiating long-term contracts in the $550–$1,000 per tonne range. India is ready to deliver at scale.

Equally critical is our industrial ecosystem. Our country’s heavy-engineering backbone that served the oil and petrochemical sectors is now repurposing themselves for the green transition — fabricating bunkering skids, dual-fuel engines, and storage systems for clean fuels. Our geography amplifies these strengths: Ports on both coasts sit astride major global trade lanes, and our seafarers can be rapidly up-skilled to handle cryogenic and digital systems for new fuels. India can produce, handle, and export the next generation of marine fuels faster and more affordably than most.

From Vision to Bankable Demand

However, ambition alone doesn’t unlock capital — bankable projects do. That is why translating intent into investable demand is the next frontier.

A joint study by the Indian Ports Association (IPA) and RMI, Gateway to Green, identifies Deendayal, VO Chidambaranar (VOC), and Paradip ports as early candidates for green-fuel hubs. They already have the land, draft, and pipeline potential. With targeted investments in storage, grid upgrades, and multi-fuel terminals, these ports can become“green ready.”

The next step is to ensure demand. Domestic green shipping corridors — such as Kandla to VOC — and international routes linking India with Singapore and Rotterdam can aggregate fuel needs and create predictable throughput. When supply meets structured demand, finance follows. Shipowners can plan fleet conversions, cargo owners can lock in long-term charters, and lenders can assess risk with confidence. This is how India intends to position itself as an indispensable node in the global low-carbon maritime economy.

Building Confidence, Creating Value

Our ministry’s immediate priority is credibility. Early milestones — pilot corridors, port retrofits, and operational benchmarks — will prove that green shipping is not an experiment but an economic upgrade. Visible success will build investor confidence, inform future regulation, and serve as a template for replication across lighthouse ports.

The macroeconomic case is equally strong. Aligning with emerging IMO and EU standards preserves export market access and shields Indian industries from future carbon penalties. Domestic manufacturing of engines, storage tanks, and digital systems will generate skilled employment and retain value onshore. A full-fledged green maritime ecosystem will create recurring service revenue for ports, while cutting freight emissions — a strategic advantage in a carbon-constrained global economy.

Every global transition presents a narrow window where leadership is won or lost. As carbon prices rise and compliance rules tighten, vessels will choose ports that offer clean fuels and efficient services. Those who act early will shape the new trade geography. Those who delay will pay higher costs to catch up.

India’s $8-billion commitment is more than an investment — it is a declaration. It signals that we intend not just to adapt to a changing world but to shape it. In doing so, we move decisively toward realising the vision of PM Narendra Modi’s Viksit Bharat by 2047 — ready not merely to participate in the green maritime economy but to lead it through initiatives taken in Amrit Kaal.

The writer is Union Minister of Ports, Shipping and Waterways.