India rolls out credit risk backstop for shipbuilders

India has introduced two government-backed credit-risk insurance products for shipbuilders, aiming to protect domestic yards against missed payments and buyer defaults on vessel construction contracts.

The measures, unveiled by shipping minister Sarbananda Sonowal, form part of New Delhi’s wider shipbuilding development programme, which has earmarked INR14.43bn ($152m) for credit-risk coverage.

The first product, Shipbuilding Project Credit Risk Insurance Policy, has been developed by state-owned export credit insurer ECGC and will cover shipbuilding contracts for overseas owners.

The second, Business Credit Shield Policy–Shipbuilders, has been developed by New India Assurance and targets domestic shipbuilding projects.

Under the arrangements, the government will subsidise insurance premiums and provide financial support to insurers when shipyards submit eligible claims.

The initiative addresses one of the financial risks facing shipbuilders, particularly on large contracts where construction can take several years and payments are tied to milestones.

Delayed instalments or buyer defaults can leave yards exposed to substantial working capital requirements while vessels remain under construction.

The two products were introduced under India’s $2.1bn shipbuilding development scheme, part of a wider maritime investment package approved by the government in September 2025. The roughly $152m allocation is part of that existing programme.

India has been stepping up financial support for its shipbuilding industry as it seeks to expand domestic construction capacity and attract more international orders.

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