India has taken a significant step toward becoming a global maritime finance and ship leasing hub, with the Government exempting eligible International Financial Services Centre (IFSC) units in GIFT City, Gandhinagar, from the licensing requirement under Section 11 of the Coastal Shipping Act, 2025, for chartering foreign vessels for EXIM and international trade operations. The notification was issued by the Ministry of Ports, Shipping and Waterways on July 10, 2026, with immediate effect.
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal described the reform as part of a "minimal governance" strategy to enhance India's maritime competitiveness, building on the landmark transformation of the sector over the last twelve years. The exemption removes the requirement for eligible IFSC units to obtain approval from the Director General of Shipping, simplifying regulatory processes, reducing compliance burden, and accelerating transaction timelines for ship leasing and financing arrangements structured at GIFT City. Crucially, the exemption is limited to international EXIM operations and does not affect India's cabotage regime, which protects Indian vessels' exclusive right to ply domestic coastal routes.
The reform builds on the Coastal Shipping Act, 2025, passed by Parliament in August 2025, which replaced outdated provisions of the Merchant Shipping Act, 1958, and introduced a simplified licensing regime for vessels engaged in coastal and chartered trade. Ship leasing at GIFT City has been growing steadily since the International Financial Services Centres Authority (IFSCA) first notified it as a recognised financial product in January 2022. By March 2025, ship leasing activity at GIFT City had quadrupled year-on-year, with 17 vessels leased and over USD 71.1 million borrowed to support operations, according to IFSCA data.
The broader maritime vision sees India targeting a top-five global position in shipbuilding and ship ownership by Amrit Kaal 2047, underpinned by planned investments worth Rs 80 lakh crore and the creation of 1.5 crore maritime jobs. India currently pays USD 70–75 billion annually to foreign shipping firms due to dependence on foreign-flagged vessels. India's ports-to-GIFT City maritime finance ecosystem, modelled on competitive hubs in Singapore and Dubai, is designed to progressively reduce this outflow while attracting global maritime capital into Indian-registered assets.
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