India is set to revoke a 1963 gazette notification that allowed Indian entities to charter foreign-flag vessels without obtaining a licence, a move aimed at aligning legacy rules with the country’s updated shipping framework.
The decision, reported by ETInfra, will withdraw an exemption that has been in force for over six decades, enabling Indian companies to hire foreign ships for carrying cargo without regulatory approval from the Directorate General of Shipping (DG Shipping). The exemption was introduced at a time when India had limited shipping capacity and relied heavily on foreign tonnage.
Officials said the withdrawal is necessary to avoid inconsistencies with the Coastal Shipping Act, 2025, which mandates licensing for foreign-flag vessels chartered by Indian entities, whether for coastal operations or international trade. Indian-flagged vessels, however, will continue to operate without such licensing requirements, reinforcing the government’s push to promote the domestic fleet.
With the revocation, Indian companies hiring foreign vessels for export-import or coastal movements will need to comply with the licensing regime, bringing greater regulatory oversight, safety compliance and alignment with international maritime obligations.
Industry stakeholders have expressed mixed reactions. While the government views the move as a step toward strengthening Indian shipping and modernising maritime governance, some exporters and traders have cautioned that additional licensing requirements could increase costs and reduce operational flexibility, given India’s continued dependence on foreign shipping capacity.
The government maintains that the change is essential to streamline maritime laws, eliminate outdated exemptions, and create a level playing field that supports the long-term growth of Indian-flag shipping.