India is aiming to bring at least 300 foreign-owned vessels under the Indian flag by 2030 as part of a broader effort to expand the national fleet and reduce logistics costs.
According to the officials, the process of re-flagging about 50 ships is already underway and is likely to be completed within the next three months. Nearly 11 major global shipping lines have expressed willingness to shift a portion of their fleets to the Indian registry—a move that authorities say reflects growing confidence in India’s maritime governance and regulatory stability.
Re-flagging enables a vessel to operate under Indian maritime law and be listed in the country’s shipping registry. Officials said the initiative will allow these ships to carry domestic cargo, support exporters—especially MSMEs—and strengthen supply chain resilience during future disruptions. It will also help retain a larger share of freight earnings within the country.
A larger Indian-flag fleet is expected to reduce dependence on foreign carriers, curb exposure to volatile freight rates, and support cost rationalisation for EXIM cargo. Lower logistics and transaction costs, officials noted, will enhance the global competitiveness of Indian products.
To accelerate re-flagging, the government has rolled out multiple policy incentives in FY26. These include priority allocation of government cargo to Indian-flagged vessels and tax exemptions for ships leased through GIFT City. The Union Budget 2025–26 further extended benefits for Indian ship management firms hiring crew and announced concessions on port tariffs and related maritime services.
The Budget also unveiled a ₹70,000-crore package for shipbuilding, ship repair and port modernisation. Shipyards have been classified as infrastructure, enabling access to long-term financing, tax breaks and smoother capital flows—measures designed to support sustained fleet expansion and attract global carriers to base more assets in India.
Major maritime infrastructure projects such as the ₹76,000-crore Wadhwan Port and capacity additions across several non-major ports are reinforcing this policy push.
Global shipping lines have begun responding. French carrier CMA CGM will register four of its vessels under the Indian flag, starting with CMA CGM Vitoria in April 2025, and has placed orders for six LNG-powered 1,700-TEU ships worth ₹3,000 crore at Cochin Shipyard. Mediterranean Shipping Co (MSC) plans to re-flag 12 container vessels, while Maersk has already shifted Maersk Vilnius and Maersk Vigo from Singapore to India, citing India’s “progressive maritime reforms”. India currently operates around 1,600 merchant ships with a combined gross tonnage of 14 million tonnes. Despite this, the country spends nearly $75 billion annually on chartering foreign vessels and accounts for only about 2% of global fleet capacity. Officials said the re-flagging programme is central to narrowing this gap and strengthening India’s maritime self-reliance.
