Govt exempts IFSC GIFT City units from licensing requirement for chartering foreign vessels
In an initiative aimed at strengthening India’s maritime services ecosystem and enhancing the country’s competitiveness in global shipping, the Government has exempted units established in
In an initiative aimed at strengthening India’s maritime services ecosystem and enhancing the country’s competitiveness in global shipping, the Government has exempted units established in the International Financial Services Centre (IFSC), GIFT City, Gandhinagar, from the licensing requirement for chartering foreign vessels for Exim and international trade operations. The exemption, notified by the Ministry of Ports, Shipping and Waterways under the provisions of 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. The notification comes into force with immediate effect. Quick answers to key questions • 5 QUESTIONS 1 What does the exemption for IFSC GIFT City units entail regarding chartering foreign vessels? ⌵ The exemption allows units in the IFSC GIFT City to charter foreign vessels for Exim and international trade operations without requiring a license from the Director General of Shipping, as per the Coastal Shipping Act, 2025. 2 Why was the licensing requirement for chartering foreign vessels removed for IFSC GIFT City units? ⌵ This reform aims to bolster India's maritime services ecosystem, enhance competitiveness in global shipping, and attract maritime investments to make GIFT City a leading maritime leasing and financing hub.
3 How will the exemption affect India's maritime finance ecosystem? ⌵ The exemption is expected to simplify the regulatory framework, encouraging maritime leasing, ship financing, and supporting India's emergence as a preferred destination for maritime business and international shipping services. 4 Should eligible IFSC units still follow any regulations when chartering foreign vessels? ⌵ Yes, while the licensing requirement is removed, existing frameworks governing coastal trade and the cabotage regime remain unchanged, ensuring that domestic trade regulations are still in effect. 5 What are the expected outcomes of the Government's initiative for GIFT City in the maritime sector? ⌵ The initiative is likely to deepen maritime capabilities, attract global investment, facilitate ship-owning and leasing structures, and reinforce India's position as a global maritime services center. Also Read | India eyes 50% global ship recycling share as Alang gets green makeover 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, ministry of ports, shipping and waterways said in a statement. The reform is a significant enabler for the growth of India’s maritime finance ecosystem.
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