IFSCA seeks easing of ship flagging and licensing rules for GIFT City to enhance India’s global shipping presence.
The International Financial Services Centres Authority (IFSCA) is championing a series of landmark reforms to establish GIFT City as a premier global maritime hub. The regulator has approached the Ministry of Ports, Shipping, and Waterways to overhaul existing frameworks, focusing on greater operational flexibility for shipping entities.
A primary proposal involves allowing companies based in the financial centre to register and flag their vessels in overseas jurisdictions. Currently, domestic regulations often mandate Indian flagging, which can be restrictive for global trade. By permitting international registration, the IFSCA aims to make the IFSC more competitive against established maritime clusters like Singapore and Dubai.
Further recommendations include exempting these entities from requiring specific licences to charter foreign-flagged ships for international cross-trade and domestic cargo movement. This shift is designed to reduce bureaucratic hurdles and lower the cost of maritime logistics.
The initiative seeks to address a significant imbalance: while India generates over 10 percent of global seaborne trade, it controls less than 2 percent of world shipping tonnage. Enhancing the attractiveness of the IFSC is expected to “onshore” ship leasing and finance activities that are currently managed abroad.
These strategic demands were formally presented for consideration on 26 December 2025. If implemented, the reforms will play a vital role in expanding the national fleet and securing the country’s supply chains against global geopolitical volatility.
SOURCE – ET INFRA
