Govt eases shipping rules for GIFT City to spur maritime leasing, finance

The government on Friday exempted units operating in the International Financial Services Centre (IFSC) at GIFT City from obtaining a licence under Section 11 of the Coastal Shipping Act, 2025 for chartering foreign vessels for export-import (EXIM) and international trade operations, in a move aimed at strengthening India's maritime leasing and financing ecosystem.

The exemption, notified by the Ministry of Ports, Shipping and Waterways under the Coastal Shipping Act, 2025, removes the requirement for eligible IFSC units to obtain a licence from the Director General of Shipping for chartering foreign vessels for operations covered under Section 11.

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According to the government, the reform is expected to strengthen GIFT City as a globally competitive maritime leasing and financing hub, facilitate maritime investments and support India's emergence as a leading maritime services centre.

The government said the move would simplify the regulatory framework governing the chartering of foreign vessels for international shipping operations and is expected to encourage maritime leasing, ship financing and ship-owning activities through GIFT City while fostering a globally competitive business environment for maritime enterprises.

Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said, "The last 12 years under the visionary leadership of Prime Minister Narendra Modi have transformed India's maritime sector through landmark reforms, world-class infrastructure and unprecedented policy support. We have laid a strong foundation. The next phase is to unlock the full potential of maritime industry by minimal governance to enhance competitiveness, efficiency that powers India's journey towards Viksit Bharat."

The ministry said the measure is also expected to facilitate greater participation of global capital in maritime assets, encourage the establishment of ship-owning and leasing structures in India, and accelerate the development of a comprehensive maritime ecosystem encompassing ship leasing, financing, asset management and other value-added maritime services.

It added that the policy aligns with the government's broader vision of establishing GIFT City as a world-class International Financial Services Centre 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 and does not alter the existing framework governing coastal trade. The prevailing cabotage regime and safeguards applicable to coastal shipping remain unchanged, while regulatory flexibility has been provided for EXIM and international trade operations.

The notification comes into force with immediate effect. The term "International Financial Services Centre" will have the meaning assigned under Section 3(1)(g) of the International Financial Services Centres Authority Act, 2019.