India, May 17 -- India's latest extension of its merchant shipping subsidy scheme may look like a routine policy continuation on the surface. But structurally, it signals something much larger, the government is now treating shipping capacity as a strategic national priority rather than just a commercial industry.

The scheme directly addresses one of India's biggest maritime vulnerabilities. Despite being one of the world's largest trading economies with a coastline stretching over 11,000 km, Indian-flagged vessels currently carry less than 5% of the country's EXIM trade.

How The Subsidy Scheme Works The scheme was started by the government of India in 2021. Under the scheme, Indian shipping companies bidding for government cargo contra...