The government is considering easing permit requirements for foreign-flagged vessels to transport containers between Indian ports, a move aimed at improving coastal cargo movement and addressing capacity constraints in the domestic shipping sector.
Officials said the proposal could allow foreign vessels to participate more easily in the country’s coastal container trade, particularly when Indian-flagged ships are unavailable. The measure is intended to reduce logistics bottlenecks, ensure timely cargo movement, and lower freight costs for exporters and importers.
Currently, strict cabotage regulations restrict the movement of domestic cargo by foreign vessels unless specific permissions are granted. Industry stakeholders have long argued that relaxing these rules could increase shipping capacity, enhance port connectivity, and support India’s growing trade volumes.
Shipping and logistics experts note that the policy shift could benefit sectors dependent on efficient container movement between major ports such as Mumbai, Chennai, and Kolkata. However, domestic shipowners may seek safeguards to ensure that local operators remain competitive in the coastal shipping market.
The government is expected to consult industry stakeholders before finalizing the policy, balancing the need for increased logistics efficiency with the interests of Indian shipping companies.