GIFT City Gets Major Boost for Global Maritime Business

The ministry clarified that the exemption is limited to the licensing requirement under Section 11 of the Coastal Shipping Act, 2025.

The Government of India has introduced a major policy reform to strengthen the country's maritime services sector by exempting eligible units in the International Financial Services Centre (IFSC) at GIFT City from licensing requirements for chartering foreign vessels used in EXIM and international trade operations.

Issued by the Ministry of Ports, Shipping and Waterways under the Coastal Shipping Act, 2025, the notification removes the requirement for these IFSC units to obtain a licence from the Director General of Shipping under Section 11 of the Act. The decision is expected to make GIFT City more attractive for global maritime leasing, financing and shipping businesses while supporting India's ambition to become a leading international maritime services hub. The exemption applies only to international and EXIM shipping activities and takes effect immediately.

Reform expected to attract investment and expand maritime finance

The policy is designed to simplify the regulatory framework governing the chartering of foreign vessels, making it easier for companies operating from GIFT City to participate in ship leasing, ship financing and ship-owning activities. Officials believe the move will encourage greater investment in maritime assets and create a more competitive business environment for companies looking to establish global shipping operations from India. The reform is also expected to strengthen related services such as maritime asset management and other specialised financial services connected with the shipping industry.

Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the country's maritime sector has undergone significant transformation over the past decade through infrastructure development and policy reforms. He added that the next stage of growth will focus on reducing regulatory hurdles and improving efficiency to unlock the sector's full potential while supporting the vision of Viksit Bharat.

Coastal shipping rules remain unchanged

The ministry clarified that the exemption is limited to the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. Existing cabotage rules and all safeguards governing India's coastal trade will continue without any changes. The reform is intended only to provide greater regulatory flexibility for international shipping and export-import operations conducted through eligible IFSC entities. By maintaining existing coastal shipping protections while easing rules for global maritime business, the government hopes to balance domestic interests with international competitiveness.

Officials said the initiative marks another step towards building a stronger maritime finance ecosystem in India. By encouraging global capital, expanding ship leasing activities and creating a more business-friendly regulatory environment, the policy is expected to strengthen GIFT City as a world-class maritime financial centre and reinforce India's position in international shipping services.