A proposed ownership mandate in India’s new shipping law is raising concerns among industry stakeholders, who warn it could dampen the global ambitions of GIFT City as an emerging maritime and financial hub.
The clause, which is expected to require a higher degree of domestic ownership or control in shipping entities, may limit the ability of foreign investors and global shipping companies to establish operations within GIFT City. Experts believe this could reduce the attractiveness of the centre, which has been positioning itself as a competitive offshore destination for ship leasing, financing, and maritime services.
GIFT City has been actively developing its International Financial Services Centre (IFSC) framework to attract global players with tax incentives, regulatory flexibility, and ease of doing business. The introduction of stricter ownership norms, however, may counter these advantages by creating entry barriers for international firms.
Industry participants have urged policymakers to strike a balance between safeguarding national interests and maintaining an open, investor-friendly environment. They argue that overly restrictive provisions could push potential investors toward more established global hubs such as Singapore or Dubai.
While the government aims to strengthen oversight and promote domestic participation in the shipping sector, stakeholders caution that the long-term success of GIFT City depends on its ability to integrate with global markets and attract diverse capital flows.
As discussions around the new shipping law continue, the final shape of the ownership clause will be closely watched for its potential impact on India’s aspirations to build a globally competitive maritime and financial ecosystem.