India plans to add 100 more vessels to its merchant fleet over the next five years as part of efforts to strengthen the country’s domestic shipping capacity and reduce its dependence on foreign carriers. The initiative was outlined by Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal at the National Shipping Board’s inaugural ‘Sagar Samvad’ in New Delhi.
India currently has around 1,600 Indian-flagged seagoing vessels. The proposed addition of 100 ships is aimed at increasing the country’s share in the transportation of its own international trade and reducing the foreign exchange outflow associated with overseas shipping services.
According to Union Minister of State for Ports, Shipping and Waterways Shantanu Thakur, India currently spends nearly $75 billion annually on freight payments to foreign shipping lines for transporting commodities including crude oil, gas, coal and urea. Expanding the domestic merchant fleet is therefore being positioned as an important step towards reducing this dependence and retaining a larger share of freight earnings within the country.
The proposed fleet expansion is part of a broader five-pillar roadmap discussed during the Sagar Samvad. The roadmap focuses on fiscal reforms, assured cargo support, competitive financing, regulatory streamlining and ease of doing business, with the objective of making Indian-flagged vessels more competitive with foreign carriers.
The government is also seeking to strengthen India’s position as a major global shipping nation. Increasing the number of Indian-owned and Indian-flagged vessels is expected to support the country’s longer-term ambition of becoming one of the world’s top five ship-owning nations by 2047, in line with the broader Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.
The expansion could also provide a significant boost to India’s shipbuilding and maritime manufacturing ecosystem, as higher domestic demand for commercial vessels can create opportunities for Indian shipyards and ancillary industries. It comes alongside ongoing efforts to expand India’s shipbuilding capacity and encourage greater participation of domestic players in merchant-vessel construction.
The initiative highlights the government’s increasing focus on maritime self-reliance, particularly after disruptions to global shipping routes have demonstrated the strategic importance of having sufficient domestic shipping capacity. A larger Indian merchant fleet would give the country greater control over the movement of critical commodities while reducing exposure to foreign freight rates and external shipping capacity.
With the proposed addition of 100 vessels, India aims to strengthen its merchant fleet, reduce the substantial annual foreign freight outgo and build a more competitive and resilient maritime ecosystem.