Regulatory Shift: Govt Exempts GIFT City Firms from DGMA Licence, Boosting International Shipping Freedom
Ministry Decision Simplifies Leasing of Foreign Vessels
The central government has taken a significant regulatory step by exempting firms based in the Gujarat International Finance Tec-City (GIFT) from obtaining a license from the Directorate General of Maritime Administration (DGMA). This decision pertains specifically to the leasing of foreign vessels.A gazette notification issued by the shipping ministry confirmed this exemption. The ministry stated that, pursuant to Section 37 of the Coastal Shipping Act, 2025, foreign vessels chartered by units established in GIFT, Gandhinagar, Gujarat, are now exempted from the licensing requirement under Section 11 of the same Act.
Addressing Past Constraints on Maritime Trade
Previously, DGMA licenses were mandatory for foreign flag ships that wished to engage in coasting trade within Indian waters. This prior requirement posed constraints on international commercial activities involving these vessels.The introduction of this exemption directly addresses concerns regarding the Coastal Shipping Act 2025. The existing act had drawn criticism from various sectors. It was being flagged for potentially hampering entities involved in commodity trading operations.
Impact on Commodity Trading and International Runs
This regulatory relaxation is expected to ease operational difficulties for those engaged in global commodity trade. The exemption allows Indian entities a clearer pathway to charter foreign flag ships exclusively for overseas runs.By removing the DGMA licensing hurdle, the government is reportedly enhancing the agility of these businesses. This move aims to streamline international maritime commerce activities originating from GIFT City.
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