The Indian shipping industry plays a paramount role in the Indian economy, keeping in mind that about 95% of the country’s trade (by volumes) goes through the sea route.
With 12 major ports and over 200 minor ports the sector has been the cornerstone of a developing economy like India.
Recognizing the importance of this sector the government in its budget made significant allocations towards the further development of this coveted sector.
In addition, India has set an ambitious target of becoming the top 5 maritime nations by 2047.
The National Shipping board which plays a cardinal role in advising to the government (Shipping ministry) on policy matters and its implementation has a crucial role to play in attaining this target.
The government of India which reconstituted the board in May 2025 roped in Mr Sameer Kumar Khare, IAS (Retd.) as NSB’s chairman who brings with him a wealth of experience having been the additional Secretary in the Department of Economic Affairs and also served as Executive Director at the Asian Development Bank.
The board’s newly appointed chairman has been travelling the length and breadth of the country meeting stakeholders and importantly understanding some of their key issues and challenges being faced by them in the sector.
In a candid and exclusive interview to Vizag Industrial Scan, Mr Khare throws light on the overall mandate of NSB, its workings with the shipping ministry and other key industry talking points.
Edited Excerpts of the Interview Below.
Sir if you could briefly talk us through the mandate of NSB.
The National Shipping board (NSB) is a statutory body which has been in existence since 1959. The board of NSB is reconstituted after every 2 years. The role of NSB is advisory in nature and advises the government and specifically the Ministry of Ports, Shipping and Waterways on the issues related to the shipping sector.
It also informs the government on any implementation issues as far as policy is concerned.
What type of members constitutes the board of NSB?
The NSB has a very diverse representation of members encompassing various stakeholders from the sector. Of the 22 members that form the board 6 people come from the political side, 6 from government sector while a wide representation comes from the private sector.
There are 10 people from the private sector that represent Seafarers, Ship owners, classification society i.e. IR Class, Ship repairers, Recyclers, IPA etc. This broad composition of members therefore gives us a wholistic view of the entire sector.
The government has put a lot of thrust on the Shipbuilding and Ship repair sector. How do you see this sector panning out?
Under the able leadership of our Prime Minister, Mr Narendra Modi & our Minister for Ports, Shipping & Waterways, Mr Sarbananda Sonowal, the shipbuilding and ship repair sector is indeed being given utmost importance by the central government and this is evident from the huge budgetary allocations that have been made by the government towards this sector.
An estimated 95% of our exports are being sent on foreign flag vessels thereby leading to significant foreign exchange (forex) outflow, as India pays billions annually to foreign shipping lines for freight. This trend must be changed.
It is therefore imperative that India has its own ships.
What will be the role of the private sector here?
The private sector has to play a huge role in this. Currently the presence of private ship manufacturers is very limited. We need to work on ways to incentivize them.
The government has therefore declared Shipbuilding as infrastructure. This will help our industry get long term loans. Additionally, there is a need to develop a robust eco-system armed with indigenous component manufacturing in India.
The budget has also provided for Shipbuilding Capability Development Centres (SCDC) for development of innovative ship design and engineering solutions as well as testing & evaluation of Shipping projects.
An outlay of Rs 1200 crores have been earmarked for this. An additional provision of Rs 1040 crores has been announced for providing capital and operational assistance to the existing and upcoming shipbuilding design and training centres from the private sector.
What is the cost differential between India and foreign shipbuilders?
There is a significant cost differential between India and foreign manufacturer which estimated to be about 20-25%.
The government of India has therefore come out with a shipbuilding financial assistance policy and is providing subsidy based on the capital cost of the ship.
This initiative seeks to help in securing orders by offsetting operational cost disadvantages, thereby strengthening the domestic shipbuilding industry.
Ship recycling is also being talked about as an area of opportunity for India. How do you view this sector?
This is another key area of focus and opportunity for the country. Ship recycling until about 6 months ago wasn’t covered by any convention.
However, the Honk Kong convention which took place in June 2025 has given this space a major boost and importantly an advantage to India.
To be candid this convention has been a game changer for ship recycling sector in India as most of our ship recycling units are compliant. But many of our competitors such as Pakistan and Bangladesh don’t possess the required certification.
So, this proves to be a boon for Indian ship recyclers as most of the west and European ships prefer going to ship recyclers which are compliant and possess the necessary certifications.
Alang in India has more than 100 ship recycling units many of which IR class has already certified.
Similarly, another innovative scheme announced in the budget is the Shipbreaking Credit note. This scheme incentivises Ship Scrapping by issuing a Credit Note of 40% of the scrap value which can be reimbursed to buy new Made in India ships.
There have been talks on scaling up Container Manufacturing in the country. How has that been coming along?
India already has 6-7 big container manufacturers supplying primarily to CONCOR. The only issue is that Chinese containers are cheaper as the steel prices are controlled by the Chinese government.
So, we are looking at this too and exploring ways to make this space competitive and give an impetus to container manufacturing in the country. The Shipping board has also recommended for having more manufacturers.
If you could talk to us on the green shipping space and its path ahead in the country?
NSB totally understands the need for green shipping and has been very supportive of the green shipping mandate.
Here I must inform you of the Green Tug Transition Programme (GTTP) which is a government initiative (Ministry of Ports, Shipping & Waterways) to replace diesel harbor tugs with green, zero-emission alternatives (electric, hybrid, hydrogen, methanol, ammonia) by 2040, promoting ‘Make in India’ and decarbonization in ports, with Phase 1 starting in 2024, aiming for 50% green tugs by 2030.
Having said that we must understand that green technology comes at a cost. Therefore, this opens the door for collaboration and tie-ups with foreign yards.
There has been good work been done by South Korea, Japan and others so we must look at this.
It is encouraging to see many of our public sector shipyards exploring tie-ups/collaborations with these state-of-the-art foreign shipyards.
What is NSB recommending in the case of Indian Seafarers?
Indian seafarers play a paramount role in this sector and have an important role to play in taking India to be among the top maritime nations in the world.
The country as you would be aware is a major supplier of skilled manpower to global shipping companies.
Having said that we need to do more in terms of skill training of seafarers and also on upgrading the maritime institutes.
We need to work on making the examination more accessible to non-costal states and also on gender diversity by bringing in more women into the workforce.
Has the NSB taking up the issue of taxation of Indian Seafarers?
Yes. This has been an issue we are cognizant of and have been actively talking to the government on this.
We understand that we need to keep the pay scale of our seafarers equally attractive to what foreign vessels pay them if not more. And to make this happen the taxes we levy on our seafarers needs to be relooked at.
We have therefore advised the government on the withholding tax issue and recommended that the withholding tax be lowered for seafarers to make it competitive.
What is NSB doing to make the maritime sector more diverse and inclusive?
India as a country has always set an example in terms of Gender diversity and this is visible in many sectors. However now is the turn of the maritime workforce to also become not only diverse but also inclusive.
I must tell you that the Government is actively working on this and getting more women sensitised and aware of the opportunities in the maritime sector.
How do you perceive the role of Maritime boards?
Maritime boards have a pivotal role in driving maritime growth and boosting the Ports & Shipping sector in a particular state.
Look at what the Gujarat maritime board has done in the state of Gujarat. It has played a predominant role in boosting the maritime sector in the state.
Formed in 1981GMB has a rich experience of the last 45 years and has showcased what port led development really means. It has developed a whole ecosystem around ports.
How do you see the maritime sector panning out in AP?
AP with its long coastline coupled with a vast hinterland has huge potential in creating a successful port led economy.
It is good to see Andhra Pradesh involving lot of private operators in developing a successful maritime sector.
I also appreciate the efforts of the government of AP in creating a new shipbuilding cluster and modernisation of fishing harbours in the state as it possesses a good labour force.
What advice would you give to APMB and other such maritime boards in the country?
Andhra Pradesh maritime board (APMB) and other such boards in different states can definitely take inspiration from how the Gujarat maritime board has fostered and effectively enabled the growth of shipping and maritime sector in the state.
Gujarat is a great example of port led development and I understand that the government wants other states to also showcase this type of development.
We have also urged the AP maritime board to look at the ship recycling opportunity in the state and have asked them to visit Alang and interact with the private shipyards there.
