The International Financial Services Centres Authority (IFSCA) has called for wide-ranging reforms in India’s shipping regulations to give entities operating from GIFT City greater operational freedom and global competitiveness. The proposed changes are aimed at easing ship chartering and registration norms, positioning GIFT City as a stronger hub for maritime finance and shipping services.
IFSCA has recommended that companies based in GIFT City be exempted from the requirement to obtain licences from the Directorate General of Shipping when chartering foreign-flagged vessels for cross-trade and export-import operations. At present, such permissions are mandatory under existing coastal and merchant shipping laws. The regulator believes that removing this requirement would significantly improve ease of doing business for IFSC-based shipping entities.
The authority has also suggested allowing GIFT City entities to register ships outside India, offering them greater flexibility in fleet management and global operations. Currently, Indian shipping laws impose strict ownership and flagging conditions, which industry participants say limit international competitiveness.
In addition, IFSCA has proposed extending the benefits of the Indian Controlled Tonnage framework to GIFT City firms. This would allow vessels with Indian ownership interest to access certain incentives, even if they operate under different flag arrangements, helping bridge regulatory gaps between IFSC entities and domestic shipping companies.
Public sector officials are examining whether these proposals can be accommodated under the revised Merchant Shipping and Coastal Shipping legislations without compromising regulatory oversight, safety standards, or national maritime interests. Stakeholder consultations are expected as part of this process.
India’s push for reform comes at a time when the country’s share of global trade continues to rise, while its share in global shipping tonnage remains relatively modest. Policymakers see regulatory flexibility as a key lever to build indigenous shipping capacity, reduce dependence on foreign fleets, and retain freight earnings within the country.
If implemented, the proposed reforms could play a crucial role in developing GIFT City as a globally competitive maritime and financial services hub, aligned with India’s long-term vision for trade, logistics, and shipping growth.