GIFT City IFSC Exempted from Vessel Charter Licence

The Indian government, through the India — Ministry of Ports, Shipping and Waterways, has exempted units operating in the International Financial Services Centre (IFSC) at GIFT City from obtaining a licence under Section 11 of the Coastal Shipping Act, 2025 for chartering foreign vessels for EXIM and international trade operations. The exemption, effective immediately, removes the requirement for eligible IFSC units to obtain a licence from the Director General of Shipping. The reform aims 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 move simplifies the regulatory framework for chartering foreign vessels, encouraging maritime leasing, ship financing, and ship-owning activities. It is expected to attract global capital into maritime assets and accelerate the development of a comprehensive maritime ecosystem. The exemption does not alter the existing cabotage regime for coastal trade. Union Minister Sarbananda Sonowal highlighted the government's vision under Prime Minister Narendra Modi to transform the maritime sector through minimal governance and enhanced competitiveness.