The Ministry of Ports, Shipping and Waterways has exempted units established in the International Financial Services Centre (IFSC) at GIFT City, Gandhinagar from the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. This exemption specifically applies to chartering foreign vessels for EXIM (export-import) and international trade operations, removing the requirement for eligible IFSC units to obtain a license from the Director General of Shipping for these activities.
The reform is designed 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 center. It aims to encourage maritime leasing, ship financing, and ship-owning activities through GIFT City while fostering a globally competitive business environment for maritime enterprises.
Importantly, the exemption is limited to the licensing requirement under Section 11 and does not alter the existing framework governing coastal trade. The prevailing cabotage regime and safeguards applicable to coastal shipping remain unchanged, with regulatory flexibility provided only for EXIM and international trade operations. The notification comes into force with immediate effect, and "International Financial Services Centre" is defined as per clause (g) of sub-section (1) of Section 3 of the International Financial Services Centres Authority Act, 2019.
This policy initiative aligns with the government's broader vision of establishing GIFT City as a world-class International Financial Services Centre for global maritime business and is expected to facilitate greater participation of global capital in maritime assets while encouraging the establishment of ship-owning and leasing structures in India.