Govt Eases Shipping Rules For IFSC Units At GIFT City To Boost Maritime Sector

Govt Eases Shipping Rules For IFSC Units At GIFT City To Boost Maritime Sector New Delhi, Jul 11 (KNN) The government has introduced a policy change aimed at strengthening the country’s maritime services sector and improving its global competitiveness. Units operating in the International Financial Services Centre (IFSC) at GIFT City, Gandhinagar, have been exempted from the licensing requirement for chartering foreign vessels used in export-import (EXIM) and international trade operations. The exemption, issued by the Ministry of Ports, Shipping and Waterways (MoPSW) under the Coastal Shipping Act, 2025, removes the need for eligible IFSC units to obtain approval from the Director General of Shipping for such activities. The move is intended to simplify regulations and create a more business-friendly environment for maritime enterprises. Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, said, “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.” Boost to Maritime Finance and Investment The reform is expected to support the growth of maritime leasing, ship financing, and ship-owning activities through GIFT City. By reducing regulatory hurdles, the government aims to attract greater global investment and encourage the development of a comprehensive maritime services ecosystem, including asset management and related services. Officials stated that the measure aligns with the broader objective of positioning GIFT City as a leading global hub for maritime finance and services. It is also expected to enhance India’s appeal as a destination for international shipping business. Limited Scope, Existing Rules Unchanged The government clarified that the exemption applies only to the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. The existing cabotage framework and safeguards governing domestic coastal trade remain unchanged. The reform provides flexibility specifically for international and EXIM-related operations without altering domestic shipping regulations. Immediate Implementation The notification has come into effect immediately. Authorities said the step marks continued efforts to strengthen India’s maritime capabilities and build a globally competitive ecosystem through policy reforms and regulatory simplification. (KNN Bureau)