The Government 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 for chartering foreign vessels for EXIM and international trade operations. The notification, issued by the Ministry of Ports, Shipping and Waterways, came into effect immediately on July 10.
Under the exemption, eligible IFSC units will no longer need to obtain a licence from the Director General of Shipping to charter foreign vessels for operations covered under Section 11 of the Coastal Shipping Act, 2025. The move is aimed at strengthening GIFT City as a global maritime leasing and financing hub while supporting maritime investments and international shipping services.
The government said the simplified regulatory framework is expected to promote maritime leasing, ship financing and ship-owning activities through GIFT City. It is also intended to create a more competitive business environment for companies operating in the maritime sector.
According to the notification, the measure is expected to attract greater global capital into maritime assets and encourage the establishment of ship-owning and leasing structures in India. It also supports the development of a broader maritime ecosystem covering ship leasing, financing, asset management and other value-added maritime services, in line with the government’s objective of developing GIFT City as an international financial services centre for global maritime business.
The exemption applies only to the licensing requirement under Section 11 of the Coastal Shipping Act, 2025 and does not change the existing framework governing coastal trade. The current cabotage regime and safeguards for coastal shipping remain unchanged, while regulatory flexibility has been provided for EXIM and international trade operations.
The notification states that “International Financial Services Centre” will have the meaning assigned under clause (g) of sub-section (1) of Section 3 of the International Financial Services Centres Authority Act, 2019. The government said the reform is expected to strengthen India’s maritime financial services and ship leasing ecosystem, attract global investment and enhance the country’s position in international maritime business.
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