GIFT City towers and construction site under overcast sky
India’s maritime ambitions just got a significant boost. The Union government has greenlit a pivotal reform, exempting units within the International Financial Services Centre (IFSC) at GIFT City, Gandhinagar, from the licensing requirements of the Coastal Shipping Act when chartering foreign vessels for EXIM and international trade.
This immediate policy change, notified by the Ministry of Ports, Shipping and Waterways, removes the previous hurdle where eligible IFSC units needed a license from the Director General of Shipping for activities under Section 11 of the Coastal Shipping Act, 2025. Essentially, it streamlines operations for businesses looking to engage foreign ships for international cargo movement, without altering the existing framework for domestic coastal trade.
Strategically, this move is designed to propel GIFT City into a global maritime leasing and financing hub. By simplifying the regulatory landscape, India aims to attract substantial global capital into its maritime assets, fostering ship-owning and leasing structures domestically. Union Minister Sarbananda Sonowal underscored this vision, emphasizing the government’s commitment to establishing GIFT City as a world-class center for global maritime business. For startup founders and investors eyeing the maritime sector, this translates to reduced bureaucratic friction and increased opportunities for international collaboration and investment within India’s burgeoning financial services hub.
The implications are clear: a more competitive and attractive environment for ship financing and owning activities in India. While ensuring the cabotage regime for coastal trade remains intact, this reform is a crucial step towards enhancing India’s overall maritime capabilities and positioning it as a key player in the global shipping ecosystem. Expect to see increased interest and investment flows into maritime services within GIFT City as a direct result of this forward-looking policy.
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