India Boosts Maritime Financing at GIFT City with Key Reform

The Indian government has exempted certain units at GIFT City from needing licenses to charter foreign vessels, enhancing maritime leasing and financing. This reform, under the Coastal Shipping Act, 2025, aims to elevate GIFT City as a global maritime hub and bolster India's position in maritime services.

In a significant regulatory shift, the Indian government's Centre has announced that eligible units at the International Financial Services Centre (IFSC) in GIFT City are now exempt from needing a license to charter foreign vessels for exports, imports, and international trade. This decision, aimed at amplifying maritime leasing and financing in the nation, was outlined in a notification by the Ministry of Ports, Shipping and Waterways under the Coastal Shipping Act, 2025.

The exemption removes the need for eligible IFSC units to obtain a license from the Director General of Shipping under Section 11 of the Act. The ministry underscores that this regulatory reform is intended to bolster GIFT City as a globally competitive hub for maritime leasing and finance, facilitating maritime investments and fortifying India's stature as a notable player in maritime services.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal highlighted how the government is laying down the groundwork for transforming India's maritime sector through strategic reforms and infrastructure upgrade. He noted the tremendous progress over the last 12 years under Prime Minister Narendra Modi's leadership and emphasized the next step is harnessing India's maritime industry's full potential to enhance competitiveness and efficiency.

The ministry elaborated that the reform would encourage global capital involvement in maritime assets and the establishment of ship-owning and leasing frameworks within India. The exemption, limited to licensing requirements under Section 11 and not affecting the existing coastal trade regime, promises to foster a conducive environment for a comprehensive maritime services ecosystem at GIFT City.

The notification, effective immediately, is part of broader government initiatives to solidify GIFT City's status as a premier International Financial Services Centre catering to maritime businesses.