India Aims To Re-Register 300 Foreign-Owned Vessels Under Indian Flag By 2030

India plans to re-register 300 foreign-owned vessels under the Indian flag by 2030 to expand the domestic fleet and lower logistics costs. Authorities said the process to re-flag around 50 vessels has already begun and is expected to be completed within the next three months.

Officials added that nearly 11 major global shipping lines have expressed interest in transferring part of their fleets to the Indian registry.

Re-flagging allows a vessel to operate under Indian maritime law and be registered in the national shipping registry. Authorities explained that this would enable ships to transport domestic cargo and support exporters, particularly smaller enterprises.

They added that the programme is expected to enhance supply chain resilience, retain freight earnings within India, and make logistics more affordable over the coming years.

Expanding the Indian-flag fleet is also projected to reduce reliance on foreign-flag carriers, which often affect freight rates, and support cost rationalisation for India’s export-import (EXIM) trade. Officials suggested that lower logistics and transaction costs would improve the global competitiveness of Indian goods.

To encourage re-flagging, the government has introduced several policy incentives in the financial year 2025–26. These include:

• Priority allocation of government cargo to Indian-flagged ships
• Tax exemptions for vessels leased through GIFT City
• Extended economic benefits for Indian ship management firms employing crew
• Concessions on port charges and related maritime services

The Union Budget 2025–26 also announced a ₹70,000-crore package for ship repair, shipbuilding, and port modernisation. Shipyards have been classified as infrastructure, providing access to long-term financing, tax concessions, and smoother capital inflows.

Officials said these measures aim to support India’s long-term fleet growth and attract more global carriers to base assets in the country.

Large maritime projects, including the ₹76,000-crore Wadhwan Port and capacity expansions across several non-major ports are also helping strengthen India’s export-focused maritime network.

Several international shipping companies have already begun responding to the government’s incentives. French carrier CMA CGM plans to register four container vessels under the Indian flag, starting with CMA CGM Vitoria in April 2025. The company has also placed orders for six LNG-powered 1,700-TEU ships worth ₹3,000 crore at Cochin Shipyard.

Mediterranean Shipping Co (MSC) has confirmed plans to re-flag 12 container vessels, while Maersk has shifted Maersk Vilnius and Maersk Vigo from Singapore to India, citing progressive maritime reforms and strong economic fundamentals in the country.

India currently operates around 1,600 merchant vessels with a combined gross tonnage of 14 million tonnes. Despite this, the country spends an estimated $75 billion annually on chartering foreign ships and accounts for only about 2% of global fleet capacity. Officials said the re-flagging programme is key to reducing this gap and strengthening India’s maritime self-reliance.

References: financialexpress, maritimegateway

Source: Maritime Shipping News