The Union Budget 2025-26 introduces significant allocations to bolster India’s maritime and aviation industries. A Maritime Development Fund with a corpus of ₹25,000 crore is proposed to provide long-term financing for the maritime sector. The government will contribute up to 49% of this fund, with the remainder sourced from ports and private entities. This initiative aims to enhance competitiveness and support the maritime industry’s growth.
The Shipbuilding Financial Assistance Policy is set for a revamp to mitigate cost disadvantages. This includes introducing credit notes for shipbreaking in Indian yards to promote a circular economy. Additionally, large ships above a specified size will be added to the Infrastructure Harmonised Master List. The budget also proposes establishing shipbuilding clusters to expand the range and capacity of ships, incorporating infrastructure development, skill enhancement, and technological advancements. To support this, the exemption of Basic Customs Duty on raw materials, components, consumables, or parts for ship manufacturing is extended for another ten years, with the same dispensation for shipbreaking activities.
In the aviation sector, the budget announces a modified UDAN scheme to enhance regional connectivity. This initiative aims to connect 120 new destinations and facilitate travel for 40 million passengers over the next decade. The scheme will also support the development of helipads and smaller airports in hilly, aspirational, and northeastern districts. Furthermore, the government plans to upgrade infrastructure and warehousing for air cargo, including high-value perishable horticultural produce, and streamline cargo screening and customs protocols to make them more user-friendly.
For Bihar, the budget proposes facilitating greenfield airports to meet the state’s future needs. This is in addition to expanding the capacity of Patna Airport and developing a brownfield airport at Bihta. Financial support is also allocated for the Western Koshi Canal ERM Project, benefiting numerous farmers cultivating over 50,000 hectares in the Mithilanchal region.
