The Indian government has exempted eligible units operating in the International Financial Services Centre (IFSC) at GIFT City from obtaining licences to charter foreign vessels for export-import (EXIM) cargo and international trade operations. The move is aimed at simplifying regulations, strengthening India’s maritime financing ecosystem, and positioning GIFT City as a global hub for ship leasing, maritime finance, and international shipping services.
The exemption, notified by the Ministry of Ports, Shipping and Waterways, removes the requirement for eligible IFSC entities to obtain a licence under Section 11 of the Coastal Shipping Act, 2025 for chartering foreign vessels. Officials believe the reform will make GIFT City more attractive for global maritime businesses while improving India’s competitiveness in international shipping.
What Has Changed?
Earlier, companies seeking to charter foreign-flagged vessels for international trade were required to obtain a licence from the Director General of Maritime Administration (DGMA) under the Coastal Shipping Act.
With the latest notification, eligible IFSC units in GIFT City will no longer need this licence for EXIM and international shipping operations.
| Policy Change | Details |
|---|---|
| Beneficiaries | IFSC units in GIFT City |
| Exemption | Licence under Section 11 of the Coastal Shipping Act, 2025 |
| Applies to | Chartering foreign vessels for EXIM and international trade |
| Objective | Simplify maritime leasing and financing |
The exemption came into effect immediately after the government notification.
Boost for Maritime Leasing and Finance
The reform is expected to significantly strengthen GIFT City’s ambitions of becoming a global maritime financial centre.
By removing a regulatory hurdle, the government hopes to encourage companies involved in:
- Ship leasing
- Ship financing
- Ship ownership
- Maritime asset management
- International shipping services
Officials believe easier regulations will attract both domestic and international investors looking to establish maritime businesses through GIFT City.
Why GIFT City Matters
GIFT City has emerged as India’s flagship International Financial Services Centre, offering tax incentives and a specialized regulatory framework designed to attract global financial institutions.
The government has steadily expanded the range of activities permitted within the IFSC, including:
| Sector | Opportunity |
|---|---|
| Banking | International financial services |
| Insurance | Global insurance operations |
| Aircraft leasing | Aviation finance |
| Ship leasing | Maritime finance |
| Fund management | Global investment services |
The latest exemption adds another important component to GIFT City’s expanding financial ecosystem.
No Change to Coastal Shipping Rules
The government clarified that the exemption applies only to the licensing requirement for chartering foreign vessels used in international trade.
Importantly, it does not alter India’s cabotage policy or the existing framework governing coastal shipping within the country.
| What Changes | What Doesn’t Change |
|---|---|
| Licence requirement for eligible IFSC units | Cabotage rules |
| Easier chartering of foreign vessels | Coastal shipping regulations |
| Maritime leasing framework | Domestic shipping safeguards |
This means India’s existing protections for domestic coastal shipping remain fully intact.
Expected Benefits
Industry experts believe the regulatory relaxation could deliver several long-term benefits.
These include:
- Increased maritime investment.
- Growth in ship leasing businesses.
- Expansion of maritime financing.
- Greater participation from global shipping companies.
- Improved ease of doing business.
- Stronger international competitiveness.
The policy also aligns with India’s broader objective of developing a comprehensive maritime services ecosystem capable of competing with established global financial centres.
Government’s Vision
According to the Ministry of Ports, Shipping and Waterways, the reform is intended to deepen India’s maritime finance ecosystem by encouraging more ship-owning, leasing, and financing activities to be routed through GIFT City.
The government expects the policy to attract global capital into maritime assets while supporting India’s ambition to become a leading international maritime services centre.
What It Means for India’s Maritime Sector
The exemption marks another significant step in India’s efforts to transform GIFT City into a global financial and maritime hub. By eliminating licensing requirements for chartering foreign vessels used in international trade, the government has reduced regulatory friction for companies operating through the IFSC while making India’s maritime finance ecosystem more competitive.
For businesses, the move is expected to lower compliance burdens and improve operational flexibility. For the broader economy, it could encourage greater investment in ship leasing, maritime financing, and international shipping services, reinforcing GIFT City’s role as a key gateway for global financial and logistics activities.
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