India is set to roll out a sweeping package of around 20 maritime sector reforms within the first 90 days of FY27, aimed at strengthening the country’s shipping ecosystem, reducing logistics costs, and enhancing its competitiveness in global trade.
The reforms—being finalised by the Ministry of Ports, Shipping and Waterways—focus on regulatory restructuring, shipbuilding incentives, fleet expansion, and ease of doing business across ports, shipping, and inland waterways.
Maritime regulator and governance overhaul
A key proposal is the creation of a strengthened maritime regulator by expanding the powers of the Directorate General of Shipping. The revamped body—likely to be rechristened as the Directorate General of Maritime Administration—will oversee safety, training, ship registration, and operations, aligning India’s regulatory framework with global standards.
Boost to shipbuilding and domestic capacity
The government is also working on a new framework to promote shipbuilding clusters and revamp financial incentives for the sector. The updated Shipbuilding Financial Assistance Policy is expected to encourage public sector units and private players to build and operate Indian-flagged vessels, reducing dependence on foreign shipyards.
India has set an ambitious target of becoming one of the world’s leading shipbuilding nations by 2047 as part of its long-term maritime strategy.
₹25,000 crore Maritime Development Fund
To address financing challenges, the government plans to operationalise a ₹25,000 crore Maritime Development Fund. The fund will provide long-term, low-cost capital for shipbuilding and maritime infrastructure, supporting domestic shipyards and enabling fleet expansion by Indian shipping companies.
Increasing Indian shipping tonnage
Policy measures are also being designed to increase the share of Indian-flagged vessels in global trade through tax, financing, and regulatory changes. Currently, less than 5% of India’s export-import cargo is carried by Indian-owned ships, resulting in an estimated annual foreign exchange outgo of about $75 billion on freight payments.
Coastal shipping and inland waterways push
The reform package includes initiatives to promote coastal shipping and inland waterways. The government aims to double their modal share from 6% to 12% by 2047. Proposed measures include discounts on port charges for coastal vessels and faster “green channel” clearances to improve cargo movement efficiency.
Legal and policy reforms
Updates to key maritime laws—including merchant shipping, port regulations, and coastal shipping frameworks—are also planned to simplify procedures, improve safety oversight, and attract private investment.
Focus on green and sustainable shipping
Sustainability is another key pillar of the reforms. The government plans to promote green ports, cleaner fuels such as green hydrogen, and environmentally friendly harbour craft, including green tugs at major ports.
Skill development and digitalisation
To support sectoral growth, India is partnering with international agencies for skill development and technology transfer. Efforts are also underway to digitise processes, enable faster dispute resolution, and streamline approvals to improve ease of doing business.
Strategic vision
The reforms are part of India’s broader maritime roadmap under initiatives such as Sagarmala and Maritime Amrit Kaal Vision 2047, which aim to modernise infrastructure, enhance logistics efficiency, and position India as a major global maritime hub.
Outlook:
With rising trade volumes and increasing geopolitical complexities in global shipping, the reform package is expected to create a more stable, cost-efficient, and competitive maritime ecosystem. By boosting domestic shipbuilding and expanding Indian shipping capacity, the government aims to reduce logistics costs while strengthening India’s presence in global maritime trade.
