The government is preparing a comprehensive push to expand India’s domestic shipping capacity and reduce reliance on foreign-flagged vessels, according to Sanjeev Sanyal.
Speaking about the country’s maritime strategy, Sanyal said India currently depends heavily on overseas ships to carry a large portion of its export-import cargo, resulting in significant outflows of freight payments. Strengthening the Indian-flag fleet, he noted, is essential to improving economic resilience and retaining more value within the country.
The proposed measures are expected to focus on incentivising domestic ship ownership, supporting shipbuilding, and improving access to long-term financing for vessel acquisition. Policymakers are also examining regulatory reforms to make Indian shipping more competitive globally.
India handles over 90% of its trade by volume through maritime transport, yet a substantial share of this cargo is carried by foreign shipping lines. Expanding the domestic fleet would not only reduce freight dependence but also enhance energy security and strategic autonomy, particularly in times of global supply chain disruptions.
Industry stakeholders have welcomed the intent, stating that targeted fiscal support, tax rationalisation and simplified compliance norms could encourage more Indian companies to invest in ship ownership.
The renewed focus on shipping aligns with broader efforts to strengthen port infrastructure, promote coastal shipping, and position India as a key player in global maritime trade. Further policy announcements are expected as the government outlines its roadmap for the sector’s expansion.