Daijiworld Media Network - New Delhi
New Delhi, Jul 10: In a significant policy move to strengthen India's maritime services sector, the Centre has exempted eligible units operating from the International Financial Services Centre (IFSC) at GIFT City in Gujarat from obtaining licences for chartering foreign vessels used in export-import (EXIM) and international shipping operations.
The Ministry of Ports, Shipping and Waterways announced the exemption on Friday, describing it as a major step towards positioning GIFT City as a global hub for maritime leasing, ship financing and related financial services.
Under the notification, eligible IFSC entities will no longer be required to secure a licence from the Director General of Shipping under Section 11 of the Coastal Shipping Act, 2025, for chartering foreign vessels engaged in EXIM and international trade.
The government said the reform is designed to simplify the regulatory framework governing international vessel chartering and is expected to accelerate the growth of India's maritime finance ecosystem.
Officials believe the move will encourage greater investment in ship leasing, ship ownership and maritime financing through GIFT City while creating a more competitive business environment for domestic and international maritime enterprises.
The exemption is also expected to attract global investors into India's maritime sector by facilitating the establishment of ship-owning and leasing structures within the country. In addition, it is intended to support the development of a comprehensive maritime services ecosystem encompassing asset management, ship financing, leasing and other specialised maritime businesses.
The policy forms part of the Centre's broader strategy to establish GIFT City as a world-class International Financial Services Centre catering to global maritime business.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the government's maritime reforms over the past decade have significantly transformed the sector through improved infrastructure and progressive policy initiatives.
He said the next phase of reforms aims to further enhance competitiveness and efficiency by reducing regulatory hurdles and creating an enabling environment that supports India's vision of becoming a developed nation under the Viksit Bharat initiative.
The ministry clarified that the exemption applies only to the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. Existing provisions governing coastal shipping, including the cabotage framework and safeguards applicable to domestic coastal trade, will remain unchanged.
The notification has come into effect immediately.
According to the government, the latest reform represents another important milestone in its efforts to build a globally competitive maritime ecosystem by strengthening India's regulatory framework for maritime financial services, attracting international investment and enhancing the country's position as a preferred destination for global maritime business and shipping services.