India has decided to retain key cabotage relaxations for foreign-flagged vessels, allowing them to continue carrying specified cargo on domestic coastal routes without obtaining individual licences. The move reverses an earlier decision to withdraw the concessions and keeps foreign shipping lines active in India’s coastal trade.
The relaxations cover cargo categories including EXIM laden containers meant for transshipment, empty containers for repositioning, agricultural and horticultural products, and fertilisers. These exemptions were originally introduced through general orders issued in 2018.
The government had earlier sought to withdraw the concessions to strengthen the Indian-flagged fleet and encourage greater investment in domestic shipping. However, the latest policy reversal means Indian shipping companies will continue to compete with major foreign carriers operating along coastal routes.
Industry stakeholders have highlighted the importance of maintaining competitive freight rates and reliable coastal capacity, while the continued presence of foreign vessels could help support transshipment operations, container availability and domestic cargo movement.
The decision is particularly significant for India’s emerging transshipment hubs, including Vizhinjam, where foreign-flagged feeder operations have played an important role in connecting the port with other Indian locations.