The Union government on 10 July 2025 exempted units operating within the International Financial Services Centre (IFSC) at GIFT City, Gandhinagar, from the licensing requirement under the Coastal Shipping Act, 2025 for chartering foreign vessels for EXIM and international trade operations. The notification, issued by the Ministry of Ports, Shipping and Waterways, comes into force with immediate effect and is expected to accelerate India's emergence as a globally competitive maritime services hub.

What the Exemption Covers

The notification removes the obligation for eligible IFSC units at GIFT City to obtain a licence from the Director General of Shipping Shyam Jagannathan when chartering foreign vessels for operations falling under Section 11 of the Coastal Shipping Act, 2025. Critically, the exemption is limited strictly to this licensing requirement and does not disturb the existing cabotage regime or the regulatory safeguards governing coastal trade. The prevailing framework for coastal shipping remains fully intact.

Why It Matters for Maritime Finance

By reducing the regulatory burden on IFSC units, the reform is designed to encourage ship leasing, ship financing, and ship-owning structures to be established through GIFT City. The policy is also expected to draw greater participation of global capital into maritime assets and support the development of a comprehensive maritime ecosystem — spanning asset management, leasing structures, and value-added maritime services — all routed through India's only operational IFSC.

Notably, this move aligns with a broader government strategy to position GIFT City as a world-class international financial centre for maritime business, competing with established hubs such as Singapore and Dubai. India's maritime finance sector has historically been dominated by foreign jurisdictions, and this exemption represents a structural attempt to onshore that activity.

What the Government Said

Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal stated: 'The last 12 years under the visionary leadership of Prime Minister Narendra Modi have transformed India's maritime sector through landmark reforms, world-class infrastructure and unprecedented policy support. We have laid a strong foundation. The next phase is to unlock the full potential of maritime industry by minimal governance to enhance competitiveness, efficiency that powers India's journey towards Viksit Bharat.'

An official statement further noted that the reform 'marks another important milestone in the Union government's ongoing efforts to build a globally competitive maritime ecosystem through progressive policy interventions.'

Regulatory Clarity and Scope

The government was explicit that the exemption applies only to the licensing provision under Section 11 of the Coastal Shipping Act, 2025. For the purposes of this notification, the term International Financial Services Centre carries the meaning assigned under Clause (g) of Sub-section (1) of Section 3 of the International Financial Services Centres Authority Act, 2019. This definitional precision is intended to prevent regulatory ambiguity and ensure that only genuine IFSC-registered units benefit from the relaxation.

What Comes Next

Industry observers expect the notification to prompt a fresh wave of maritime leasing and financing entities to set up operations at GIFT City, potentially drawing investment from global shipping conglomerates and financial institutions. The measure is seen as a key building block toward India's broader ambition of becoming a preferred destination for international maritime business — a goal that will require sustained policy follow-through beyond this single exemption.