In a move to boost India’s maritime services sector, the government has exempted units in the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar from needing a license under the Coastal Shipping Act for chartering foreign vessels. This exemption, announced by the Ministry of Ports, Shipping and Waterways, aims to enhance GIFT City’s status as a global maritime leasing and financing hub.
The reform is set to promote maritime investments and bolster India’s position as a key maritime services center. By easing regulations on chartering foreign vessels for international shipping activities, the initiative is expected to stimulate maritime leasing, ship financing, and ownership operations within GIFT City.
Furthermore, the policy change is anticipated to attract more global capital into maritime assets, encourage the establishment of ship-owning and leasing structures in India, and expedite the growth of a comprehensive maritime ecosystem. This aligns with the government’s vision of positioning GIFT City as a premier International Financial Services Centre for global maritime commerce.
The exemption, effective immediately, specifically pertains to the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. It does not impact the existing framework governing coastal trade, including the cabotage regime and safeguards for coastal shipping. The move is part of the government’s strategy to enhance India’s maritime capabilities, attract international investments, and solidify the country’s standing in the maritime business and international shipping sectors.
