Mediterranean Shipping Company (MSC), the world’s largest container carrier, is planning to register ships under the Indian flag as part of a strategy to align with India’s evolving maritime and competition framework.
Sources said the Geneva-based carrier, led by CEO Soren Toft, is likely to announce its intent next week. “Internal discussions are underway, and a final decision is expected soon,” said a person aware of the development. MSC has not commented officially.
The move follows that of rival CMA CGM, which has already flagged three container ships in India since April and plans to register a fourth by month-end — becoming the first global mainline carrier to do so.
Like CMA CGM, MSC is expected to use the Gujarat International Finance Tec-City (GIFT City), India’s International Financial Services Centre (IFSC), to own and operate the vessels. GIFT City’s tax-neutral environment has become a preferred base for global shipping firms undertaking ship leasing and financing.
The plan also comes on the back of the government’s decision to grant infrastructure status to ships, enabling fleet owners to access long-term, low-cost funds and boost India’s container tonnage. Earlier this year, Toft met Union Ministers Sarbananda Sonowal and Piyush Goyal to discuss MSC’s investment plans in India.
Aligning With Vessel Sharing Rules
The move is also linked to a proposed conditional exemption for Vessel Sharing Agreements (VSAs) under India’s Competition Act. The exemption, being discussed by the Ministries of Ports and Corporate Affairs, would allow VSAs to continue for three years — provided that at least 5% of total capacity is carried on Indian-flagged vessels.
A VSA allows multiple shipping lines to share space on each other’s ships, expanding route coverage and optimizing costs. “By registering ships in India, global carriers can meet the local participation requirement while strengthening their market access,” said a senior government official.
Boost for Indian Maritime Sector
India’s EXIM container trade — nearly 99% by volume — is dominated by foreign carriers such as MSC, Maersk, and CMA CGM. The Shipping Corporation of India (SCI), with just three container ships, is the only Indian mainline operator. To reduce dependence on foreign lines, the government has directed SCI and Container Corporation of India (CONCOR) to jointly launch Bharat Container Shipping Line.
The policy shift also aligns with the government’s plan to reverse 2018 orders that allowed foreign-flagged ships to carry EXIM and empty containers on domestic routes without a licence — a move officials say weakened India’s shipping ecosystem.
With new incentives, infrastructure status, and a 20-year age cap on vessel registration, the government expects a surge in Indian-flagged tonnage.
“These steps are part of the Maritime Amrit Kaal Vision 2047, aimed at strengthening India’s shipping capabilities and reducing foreign freight dependency,” the official added.
