The Government of India has eased regulations for entities operating in Gujarat International Finance Tec-City (GIFT City) by exempting them from obtaining a Directorate General of Maritime Administration (DGMA) licence for chartering foreign-flagged ships. The policy change is aimed at simplifying regulatory procedures and strengthening GIFT City’s position as a global hub for maritime finance and ship leasing.
Under the revised framework, eligible GIFT City units engaged in ship leasing and maritime financial services can charter foreign-flagged vessels without securing a separate DGMA licence, reducing compliance requirements and accelerating transaction timelines. The exemption is expected to make it easier for companies to structure leasing and chartering arrangements while improving operational efficiency.
The move aligns with the government’s broader strategy to promote GIFT City as an internationally competitive centre for ship leasing, aviation leasing, insurance, and financial services. By streamlining regulatory processes, authorities aim to attract greater participation from global shipping companies, lessors, and financial institutions seeking a business-friendly jurisdiction for maritime transactions.
Industry stakeholders have welcomed the decision, noting that reduced regulatory hurdles will lower administrative costs, improve ease of doing business, and enhance the attractiveness of GIFT City for international ship owners and charterers. The reform is also expected to encourage more ship financing and leasing activities to be conducted from India rather than through overseas financial centres.
The exemption complements a series of policy initiatives introduced in recent years to develop India’s maritime ecosystem, including tax incentives, regulatory reforms, and the expansion of ship leasing activities within GIFT City. These measures are intended to increase India’s share in global maritime services while supporting the growth of a robust domestic maritime finance industry.
With the latest regulatory relaxation, GIFT City is expected to strengthen its role in the global maritime sector, offering shipping companies a more efficient platform for vessel leasing and chartering while contributing to India’s ambition of becoming a leading international maritime and financial services hub.
