The Centre has exempted IFSC units at GIFT City from licensing requirements to charter foreign vessels. This major reform aims to boost maritime leasing and financing and establish GIFT City as a globally competitive maritime services hub.
The Centre has exempted eligible units operating from the International Financial Services Centre (IFSC) at GIFT City from the requirement of obtaining a licence to charter foreign vessels for exports, imports and international trade operations, in a move aimed at boosting maritime leasing and financing activities in India.
Boost for Maritime Leasing at GIFT City
The Ministry of Ports, Shipping and Waterways, in a notification issued under the Coastal Shipping Act, 2025, said the exemption removes the requirement for eligible IFSC units to obtain a licence from the Director General of Shipping under Section 11 of the Act for chartering foreign vessels for such operations.
According to the notification, 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 ministry said the move simplifies the regulatory framework for chartering foreign vessels for international shipping operations and is expected to encourage maritime leasing, ship financing and ship-owning activities through GIFT City.
"The reform is a significant enabler for the growth of India's maritime finance ecosystem," the notification said, adding that it will help foster "a globally competitive business environment for maritime enterprises."
'Transformed India's Maritime Sector'
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal said the government has laid the foundation for transforming the maritime sector through reforms and infrastructure development.
"The last 12 years under the visionary leadership of Hon'ble Prime Minister Shri Narendra Modi ji have transformed India's maritime sector through landmark reforms, world-class infrastructure and unprecedented policy support. We have laid a strong foundation," Sonowal said.
"The next phase is to unlock the full potential of maritime industry by minimal governance to enhances competitiveness, efficiency that it powers India's journey towards Viksit Bharat," he added.
Attracting Global Capital, Building Ecosystem
The ministry said the exemption is expected to facilitate greater participation of global capital in maritime assets while encouraging the establishment of ship-owning and leasing structures in India.
It added that the measure will support the development of a broader maritime services ecosystem covering ship leasing, financing, asset management and other value-added maritime services, in line with the government's vision of making GIFT City a global International Financial Services Centre for maritime business.
Cabotage Framework Unchanged
The notification clarified that the exemption is limited to the licensing requirement under Section 11 of the Coastal Shipping Act, 2025, and does not change the existing cabotage 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 ministry said.
The notification comes into force with immediate effect. It also specifies that the term "International Financial Services Centre" will have the meaning assigned under the International Financial Services Centres Authority Act, 2019. (ANI)
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