**Executive Summary**
The Ministry of Ports, Shipping and Waterways has exempted units established in the IFSC GIFT City, Gandhinagar, from licensing requirements under Section 11 of the Coastal Shipping Act, 2025. Effective immediately as of July 10, 2026, this reform removes the need for these units to obtain licenses from the Director General of Shipping for chartering foreign vessels for international trade. The initiative aims to position GIFT City as a global maritime hub and simplify the regulatory framework for ship leasing and financing.
**Key Points / Main Content**
**Licensing and Regulatory Changes**
* **Exemption Criteria:** Units within the International Financial Services Centre (IFSC) at GIFT City are exempt from obtaining a license under Section 11 of the Coastal Shipping Act, 2025, when chartering foreign vessels.
* **Authority:** The requirement to obtain approval from the Director General of Shipping for these specific operations has been removed.
* **Operational Scope:** The exemption applies strictly to foreign vessels chartered for EXIM (Export-Import) and international trade operations.
* **Immediate Effect:** The notification and its provisions come into force with immediate effect.
**Maritime Ecosystem Development**
* **Financial Hub Promotion:** The reform is designed to strengthen India’s maritime leasing, ship financing, and ship-owning ecosystem.
* **Investment Attraction:** By minimizing governance, the government intends to facilitate greater participation of global capital in maritime assets.
* **Service Expansion:** The policy supports the development of value-added services, including asset management and maritime financial services.
**Limitations and Continuity**
* **Cabotage Laws:** The exemption is limited to Section 11 licensing and does not alter the existing framework governing coastal trade.
* **Safeguards:** Prevailing cabotage regimes and safeguards applicable to coastal shipping remains unchanged.
**Impact Analysis**
**IFSC GIFT City Units (Maritime Enterprises)**
**Impact**
These units benefit from increased ease of doing business and reduced regulatory hurdles, as they no longer need to seek specific licenses for chartering foreign vessels for international operations.
**Action Required**
Units should update their operational protocols to reflect the exemption and leverage the simplified framework for international shipping and trade activities.
**Global Investors and Ship Owners**
**Impact**
The reform makes the Indian maritime sector more attractive for global capital, encouraging the establishment of ship-owning and leasing structures within India.
**Action Required**
Entities looking to invest in maritime assets should evaluate GIFT City as a preferred destination for ship leasing and financing operations under the new regulatory flexibility.
**Director General of Shipping**
**Impact**
The oversight role regarding the issuance of licenses under Section 11 is removed specifically for eligible IFSC units.
**Action Required**
Align internal administrative processes and monitoring systems to reflect the exemption granted to IFSC GIFT City units.
Key Entities Referenced
Coastal Shipping Act, 2025: The primary legislation under which Section 11 exemptions are granted to units for chartering foreign vessels without a license.
IFSC GIFT City, Gandhinagar: The specific special economic zone whose units are exempted from licensing requirements to promote India's maritime leasing and financing ecosystem.
Ministry of Ports, Shipping and Waterways: The nodal ministry responsible for notifying the exemption and overseeing the development of the maritime services sector.
International Financial Services Centres Authority Act, 2019: Referenced legislation used to define the scope and legal meaning of an 'International Financial Services Centre' (IFSC).
Director General of Shipping: The regulatory authority from whose licensing requirements eligible IFSC units are now exempted for chartering foreign vessels.
Ministry of Ports, Shipping and Waterways
Government Exempts IFSC GIFT City Units from
Licensing Requirement under the Coastal
Shipping Act, 2025
Landmark reform to strengthen India’s maritime leasing and
financing ecosystem, promote ease of doing business and
position GIFT City as a global maritime services hub
प्रव तथ: 10 JUL 2026 6:34PM by PIB Delhi
In a major policy 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
under Section 11 of the Coastal Shipping Act, 2025 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
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.
The reform is a significant enabler for the growth of India’s maritime finance ecosystem. By simplifying
the regulatory framework governing the chartering of foreign vessels for international shipping operations,
it is expected to encourage maritime leasing, ship financing and ship-owning activities through GIFT City
while fostering a globally competitive business environment for maritime enterprises.
Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal, said:“The last 12
years under the visionary leadership of Prime Minister Narendra Modi have transformed India’s maritime
sector through landmark reforms, world-class infrastructure and unprecedented policy support. We have
laid a strong foundation. The next phase is to unlock the full potential of maritime industry by minimal
governance to enhance competitiveness, efficiency that powers India’s journey towards Viksit Bharat.”
The measure is also expected to facilitate greater participation of global capital in maritime assets,
encourage the establishment of ship-owning and leasing structures in India, and accelerate the
development of a comprehensive maritime ecosystem encompassing ship leasing, financing, asset
management and other value-added maritime services. The policy aligns with the Government’s broader
vision of establishing GIFT City as a world-class International Financial Services Centre for global
maritime business.
Importantly, the exemption is limited to the licensing requirement under Section 11 of the Coastal
Shipping Act, 2025 and does not alter the existing framework governing coastal trade. The prevailing
cabotage regime and safeguards applicable to coastal shipping remain unchanged, while regulatoryflexibility has been provided for EXIM and international trade operations.
The notification comes into force with immediate effect. “International Financial Services Centre” shall
have the meaning assigned to it under clause (g) of sub-section (1) of Section 3 of the International
Financial Services Centres Authority Act, 2019.
This reform marks another important milestone in the Government’s ongoing efforts to build a globally
competitive maritime ecosystem through progressive policy interventions. By strengthening the regulatory
framework for maritime financial services and ship leasing, the initiative is expected to deepen India’s
maritime capabilities, attract global investment and reinforce the country’s position as a preferred
destination for maritime business and international shipping services.
***
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