India Charts Course to Become Global Hub for Ship Ownership, Leasing and Maritime Finance: Sarbananda Sonowal

Key Highlights:

• India aims to become a global hub for ship ownership, leasing, and maritime finance, with GIFT City as the central platform.
• Union Minister Sarbananda Sonowal addressed the India Ship Leasing and Financing Summit at GIFT City, Gandhinagar.
• Key reforms include allowing GIFT IFSC-based companies to own foreign-flag vessels.
• The government has committed ₹25,000 crore to the Maritime Development Fund and ₹24,736 crore to the Shipbuilding Financial Assistance Scheme (SBFAS) 2.0.
• India's share of global tonnage is projected to rise from 30.1% in 2024 to 35.4% in 2025.
• India has emerged as the world's largest ship recycling nation.

Detailed Insights:

• The summit was organized by the International Financial Services Centres Authority (IFSCA) in collaboration with the Ministry of Ports, Shipping and Waterways (MoPSW).
• The initiative leverages India's historical maritime legacy, referencing the Indus Valley Civilization and the ancient port of Lothal.
• Currently, 38 ship lessors are registered, collectively leasing 43 vessels, with 24 now flying the Indian flag.
• 41 domestic and international banks in the IFSC have extended approximately USD 60.1 million in funding to ship leasing entities.
• Reforms also include exemption from licensing requirements under the Coastal Shipping Act, 2025, for foreign vessels on charter.
• The shift in fleet counting from flag-based tonnage to owned and controlled tonnage marks a fundamental change in policy.
• The Maritime Development Fund is expected to catalyze investments of up to ₹1.5 lakh crore by 2030.
• SBFAS 2.0 has been extended to 2036, aiming to strengthen Indian shipyards and vessel ownership.
• The vision for maritime growth is guided by Maritime India Vision (MIV) 2030 and Maritime Amrit Kaal Vision (MAKV) 2047.

Key Concepts Involved:

• GIFT City (Gujarat International Finance Tec-City): India's first operational smart city and international financial services centre.
• International Financial Services Centres Authority (IFSCA): The unified regulator for financial services in IFSCs in India.
• Maritime India Vision (MIV) 2030: A comprehensive roadmap for the Indian maritime sector's growth and development.
• Coastal Shipping Act, 2025: Legislation governing coastal shipping activities in India, mentioned for licensing exemptions.