India Exempts GIFT City Units From Foreign Vessel Licensing

The Ministry of Ports, Shipping and Waterways has exempted eligible units operating from the International Financial Services Centre (IFSC) at GIFT City from the requirement to obtain licenses for chartering foreign vessels. Notified on July 10, 2026, under the Coastal Shipping Act, 2025, the reform removes the need for these units to secure approvals from the Director General of Shipping under Section 11 of the Act.

This regulatory shift applies strictly to international trade and export-import (EXIM) operations. The government confirmed that existing cabotage regimes and safeguards for coastal shipping remain unchanged to preserve the exclusive rights of Indian vessels on coastal routes. The measure aims to transform GIFT City into a globally competitive maritime leasing and financing hub, reducing India's dependence on overseas centers such as Singapore and Dubai.

Union Minister Sarbananda Sonowal stated that the initiative focuses on minimal governance to enhance competitiveness and efficiency. The reform follows a trend of growth in the hub, where ship leasing activity had reached 17 vessels by March 2025, with over $71.1 million borrowed to support operations. The International Financial Services Centres Authority had previously paved the way for this growth by recognizing ship leasing as a financial product in January 2022.