THEBUSINESSBYTES
BUREAU
NEW
DELHI, JULY 10, 2026
In a landmark move to strengthen India’s
maritime financing and leasing ecosystem, the Government has exempted units
operating in the International Financial Services Centre (IFSC) at GIFT City,
Gandhinagar, from the licensing requirement under Section 11 of the Coastal
Shipping Act, 2025 for chartering foreign vessels engaged in EXIM and
international trade operations.
The notification,
issued by the Ministry of Ports, Shipping and Waterways, eliminates the need
for eligible IFSC entities to obtain a licence from the Director General of
Shipping before chartering foreign vessels for international shipping
activities covered under the Act. The reform is expected to significantly
improve the ease of doing business, attract global maritime investments and
strengthen GIFT City’s position as a world-class hub for maritime leasing, ship
financing and related financial services.
The policy marks a
major step towards creating a globally competitive maritime services ecosystem
by simplifying regulations governing international shipping operations.
Industry stakeholders expect the exemption to encourage ship-owning, leasing
and financing activities through GIFT City, while boosting India's appeal as a
preferred destination for maritime businesses and international shipping
services.
Union Minister for
Ports, Shipping and Waterways Sarbananda Sonowal said the government’s maritime
reforms over the past 12 years have transformed the sector through policy
initiatives, infrastructure development and enhanced investment opportunities.
He said the next phase of reforms aims to unlock the maritime industry's full
potential through minimal governance, greater efficiency and enhanced global
competitiveness, supporting India's vision of becoming a developed nation.
The exemption is also
expected to facilitate increased participation of international capital in
maritime assets by encouraging global investors to establish ship-owning and
leasing structures in India. Experts believe the move will accelerate the development
of a comprehensive maritime ecosystem encompassing ship leasing, financing,
asset management and other high-value maritime services within GIFT City.
The government
clarified that the exemption is restricted to the licensing requirement under Section
11 of the Coastal Shipping Act, 2025 and does not alter India's existing
cabotage framework governing coastal trade. Existing safeguards for coastal
shipping remain fully intact, while regulatory flexibility has been introduced
exclusively for EXIM and international shipping operations.
The notification
takes immediate effect and defines the International Financial Services Centre
in accordance with the provisions of the International Financial Services
Centres Authority Act, 2019.
The latest policy
reform reinforces the government's broader strategy of positioning GIFT City as
a global financial and maritime services hub. By streamlining regulations and
strengthening the maritime financial services framework, the initiative is expected
to deepen India's maritime capabilities, attract global investment and further
elevate the country's standing in the international shipping industry.
