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The Indian government’s ambitious push to boost the domestic shipbuilding industry, announced in the Union Budget, is already drawing international interest, with South Korea stepping forward to collaborate on key initiatives. The Korea Marine Equipment Association (KOMEA), a Seoul-based non-profit under South Korea’s Ministry of Industry, Trade and Energy, has offered its support to Indian shipyards for joint vessel design and construction, modernisation of shipyard production facilities, and technology transfer to enhance manufacturing processes, according to multiple sources.
KOMEA, which represents major Korean shipbuilding and ship repair enterprises—including HD Hyundai Heavy Industries, Hanwa Ocean (formerly Daewoo Shipbuilding and Marine Engineering), and Samsung Heavy Industries—has formally pledged to provide highly qualified specialists for on-site education and training. The association also aims to develop joint educational programs, supply industrial equipment for modernising Indian shipyards, facilitate technology transfer, and support the localisation of marine equipment and spare parts.
Founded in 1980, KOMEA has been instrumental in promoting South Korean marine equipment manufacturers globally and currently has a membership base of 304 entities involved in shipbuilding, design, and repair. The association operates in eight countries, including China, Japan, Singapore, the United States, Greece, Saudi Arabia, Brazil, and Russia. With plans to expand its footprint in India, KOMEA sees the country as a strategic partner in advancing shipbuilding capabilities under a bilateral cooperation framework.
“Building strong cooperative relationships between South Korean entities and Indian shipyards could significantly contribute to the growth of the shipbuilding industry in both nations,” a KOMEA official stated. “With over four decades of experience, KOMEA and its members can provide effective solutions to challenges in the shipbuilding sector within a short timeframe.”
The Union Budget, presented by Finance Minister Nirmala Sitharaman, earmarked ₹25,000 crore for the Maritime Development Fund (MDF) and introduced a revamped shipbuilding financial assistance policy to counter cost disadvantages. Additional measures include credit incentives for shipbreaking at Indian yards to promote a circular economy and granting infrastructure status to large ships above a specified size. The government also announced plans to develop shipbuilding clusters with enhanced infrastructure, skilling initiatives, and technological advancements to strengthen the industry’s ecosystem.
A significant boost for shipbuilders came with the extension of the exemption from Basic Customs Duty (BCD) on raw materials, components, consumables, and parts used in ship manufacturing. This exemption, originally set to expire, will now be extended for another ten years from April 1, 2025.
Ahead of the budget announcement, high-level delegations from the Ministry of Ports, Shipping, and Waterways, along with representatives from the private shipbuilding sector, visited leading shipyards in South Korea and Japan. These visits were aimed at forging partnerships and leveraging global expertise to strengthen India’s shipbuilding industry. With South Korea now expressing formal interest in collaboration, the stage is set for India to accelerate its shipbuilding ambitions and emerge as a formidable player in the global maritime sector.
Source: ET Infra
Logistics and supply chain resilience have emerged as key economic themes at the BRICS Summit 2026 in New Delhi, with India using its chairship to push discussions around more resilient and predictable trade infrastructure among member countries. The two-day summit opened in New Delhi this weekend, bringing supply chains and trade logistics into sharper focus as part of the broader economic discussions among BRICS members. The emphasis reflects the growing importance of logistics infrastructure in supporting trade and maintaining the reliability of cross-border supply networks. The issue was already highlighted a day before the formal summit sessions began, at the BRICS Business Forum on Friday, where the push for stronger trade and logistics systems was laid out. Logistics gains strategic importance For BRICS economies, the ability to move goods efficiently across borders is closely linked to the expansion and reliability of trade. Supply chain disruptions can affect the movement of goods, increase uncertainty for businesses and make trade flows less predictable. Against this backdrop, the focus in New Delhi has been on creating conditions that can make trade infrastructure more resilient. India's approach under its BRICS chairship has placed predictability alongside resilience, signalling the importance of infrastructure and logistics networks that can support sustained trade between member economies. The emphasis also reflects the changing role of logistics in the global economy. Once viewed primarily as an operational component of trade, logistics infrastructure is increasingly becoming part of wider economic and strategic discussions, particularly as businesses and governments seek greater resilience in international supply chains. Trade infrastructure in focus The focus on trade logistics at the summit comes as BRICS economies continue to look at ways of strengthening economic cooperation. Efficient infrastructure, dependable trade corridors and predictable movement of goods are fundamental to making greater intra-BRICS trade possible. For India, the discussion is particularly relevant as it continues to position logistics infrastructure as an important element of its wider trade and economic agenda. The BRICS chairship provides a platform to bring these issues into discussions involving major emerging economies. The discussions in New Delhi therefore put logistics closer to the centre of the BRICS economic conversation. Rather than being treated simply as a supporting function for trade, supply chains are increasingly being considered an important part of economic resilience and international cooperation. As the summit proceedings continue, the focus on resilient and predictable trade infrastructure highlights the role that logistics can play in shaping the future of economic engagement among BRICS countries. Follow CARGOCONNECT for more such news
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0. The scheme aims to provide credit guarantee coverage of 100% for MSMEs and 90% for non-MSMEs, as well as the airline sector, to Member Lending Institutions (MLIs) by National Credit Guarantee Trustee Company Limited (NCGTC) for the amount in default under the additional credit facility extended to the eligible borrowers to tide over any short-term liquidity mismatches in view of the West Asia Crisis. The total outlay of the scheme is expected to be ₹18,100 crore, and it is expected to generate additional credit flows worth ₹2.25 lakh crore. The scheme is open to MSMEs, non-MSMEs with existing working capital limits, and scheduled passenger airlines that have outstanding credit facilities as of March 31, 2026, as long as their loan accounts are not overdue. Under the scheme, the government will provide 100% coverage to MSMEs and 90% to non-MSMEs and airlines for loans they take for additional credit up to 20% of the peak working capital utilised during the fourth quarter of 2025-26, capped at Rs. 100 crore. For airlines, the loans can be for up to 100% of their peak working capital, but this is capped at ₹1,500 crore per borrower, subject to satisfying certain specific conditions. However, the scheme would apply to all loans sanctioned during the period from the date of issue of these guidelines by NCGTC up to 31 March 2027, and the maximum period of guarantee cover shall be co-terminus with the tenor of the loan. The scheme aims to enable businesses to tide over the challenges arising from the West Asia conflict. Additionally, this is expected to help businesses maintain their operations, protect jobs, and sustain supply chains. Overall, the proposed credit guarantee scheme is a major step to help businesses, particularly MSMEs and the airline sector, to ensure their additional working capital needs are catered to by the banks & financial institutions. By providing timely liquidity, the scheme will sustain the businesses and prevent job losses. It will also promote uninterrupted domestic production and maintain the resilience of the ecosystem. Follow CARGOCONNECT for more news & updates!
Jupiter Electric Mobility has announced a strategic partnership with Porter to accelerate the transition to electric vehicles (EVs) in the logistics sector. This collaboration centres on Jupiter’s Udaan programme, which supports small entrepreneurs and drivers in adopting electric commercial vehicles. Through the initiative, participants will gain access to professional training, EV resources, and comprehensive business support via Jupiter’s dealership network. Under the partnership, drivers and small business owners purchasing Jupiter’s electric commercial vehicle, the Tez, will receive mentorship to scale their operations efficiently. Porter will play a vital role in onboarding these drivers, ensuring their integration into the burgeoning electric logistics ecosystem. Together, the companies aim to address economic barriers to EV adoption while fostering sustainability within the sector. Tanuj Khandelwal, Vice President at Porter, emphasised that the alliance aligns with their mission to empower logistics professionals and contribute to a greener future. Similarly, Jupiter Electric Mobility, a subsidiary of Jupiter Wagons Ltd, highlighted that the programme is designed to enhance drivers’ earnings and promote eco-conscious operations. Porter’s extensive network, comprising over 7.5 lakh drivers across 22 cities, will enable the widespread rollout of the Udaan programme. This partnership represents a pivotal step toward integrating EVs into India’s logistics framework, demonstrating that environmental sustainability and economic growth can coexist. As India increasingly turns to sustainable practices to combat carbon emissions, this collaboration exemplifies how cross-industry partnerships can accelerate green mobility solutions. Jupiter and Porter’s efforts could inspire a broader shift in the logistics industry, making eco-friendly operations the norm rather than the exception.
