Maritime Revolution: Government Exempts GIFT City IFSC Units from Licensing as Coastal Shipping Act Reforms Anchor India’s Global Financial Ambitions

Maritime Revolution: Government Exempts GIFT City IFSC Units from Licensing as Coastal Shipping Act Reforms Anchor India’s Global Financial Ambitions​

Policy Reform Boosts Marine Finance Ecosystem in GIFT City​

The Indian government has rolled out a major policy initiative aimed at significantly strengthening the nation's maritime services ecosystem. Units established within the International Financial Services Centre (IFSC), located in GIFT City, Gandhinagar, have been granted an exemption from the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. This decisive move is designed to enhance India’s global competitiveness in international shipping and maritime leasing.

The exemption, announced by the Ministry of Ports, Shipping and Waterways, removes the necessity for eligible IFSC units to obtain a license from the Director General of Shipping. This requirement specifically pertains to chartering foreign vessels for operations covering EXIM and international trade under Section 11 of the Act. The reform is intended to solidify GIFT City's position as a globally competitive hub for maritime leasing and financing activities.

Strengthening Maritime Investment and Trade Operations​

This regulatory simplification is set to be a powerful enabler for growth within India's burgeoning maritime finance sector. By streamlining the framework that governs the chartering of foreign vessels, the government expects to encourage significant activity in ship financing, maritime leasing, and ship-owning structures through GIFT City.

The measure aims to foster a globally competitive business environment essential for modern maritime enterprises. The policy is expected to facilitate greater participation from global capital into maritime assets. This will accelerate the development of a comprehensive ecosystem encompassing asset management, shipping finance, and other value-added maritime services.

Ministerial Viewpoint on Maritime Sector Transformation​

Shri Sarbananda Sonowal, Union Minister of Ports, Shipping and Waterways, emphasized that the Indian maritime sector has been transformed by landmark reforms over the past 12 years. He stated that these developments have laid a strong foundation for the next phase of growth. The goal is to unlock the full potential of the industry through minimal governance, thereby enhancing efficiency and powering India's journey toward Viksit Bharat.

The policy clearly aligns with the government’s vision of establishing GIFT City as a premier International Financial Services Centre (IFSC) for global maritime business. This reform underscores the administration’s commitment to progressively building a globally competitive maritime ecosystem.

Scope Clarification: EXIM Operations are Focused, Coastal Trade Remains Regulated​

It is crucial to note that this specific exemption applies solely to the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. The existing regulatory structure governing coastal trade remains unchanged and applicable. Regulatory flexibility has been provided specifically for international trade and EXIM operations.

This targeted approach allows the government to support international maritime growth without altering the prevailing cabotage regime safeguards applicable to domestic coastal shipping movements.

The notification comes into immediate effect, marking a significant milestone in the national efforts toward building deep-rooted maritime capabilities. By strengthening the regulatory framework for financial services within maritime trade, the initiative aims to attract global investment and reinforce India’s preference as a destination for international shipping business.