India Plans 100 New Ships To Cut Foreign Freight Bill
ECONOMY & POLICY

India Plans 100 New Ships To Cut Foreign Freight Bill

India plans to add 100 vessels to its merchant fleet over the next five years to reduce dependence on foreign shipping lines and retain a larger share of freight spending. The minister of state for ports, shipping and waterways, Shantanu Thakur, said India pays close to $75 bn annually to foreign shipping lines to transport crude oil, natural gas, coal and urea. The plan was discussed at the National Shipping Board's first Sagar Samvad and forms part of a five pillar roadmap to make Indian flagged shipping more competitive.

Industry representatives said Indian flagged vessels face a 16 to 20 per cent cost disadvantage compared with foreign flagged ships, citing taxes on imports, maintenance services and higher domestic financing costs. The shortfall is intensified by tax treatment of seafarers' wages and freight income and by the Right of First Refusal framework, which requires domestic owners to match foreign freight rates to secure cargo. That combination makes fleet expansion difficult despite strategic reasons to increase domestic tonnage.

The NSB panel proposed fiscal reforms, assured cargo support, access to competitive financing, regulatory streamlining and improved ease of doing business, and said these measures could enable the addition of 100 ships in five years. The government is pursuing Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 and is targeting a quadrupling of port capacity to 10 bn t annually by 2047. The Rs 100 bn Container Manufacturing Assistance Scheme has already attracted orders from a global shipping major.

Officials said expansion will require long term, low cost capital and a stronger domestic maritime ecosystem, including shipbuilding and skilled employment. Labour ministry officials said India's seafarer pool could become a significant source of employment as global demand rises. India's fleet comprises 1,544 vessels, including 492 overseas and 1,052 coastal vessels, and gross tonnage (GT) crossed 14.2 mn in March after 92 vessels were added in FY26, contributing a combined GT of 1.584 mn. The union minister for ports, shipping and waterways had earlier said the country may add about 62 vessels in FY27, creating an additional 2.85 mn GT capacity.

India plans to add 100 vessels to its merchant fleet over the next five years to reduce dependence on foreign shipping lines and retain a larger share of freight spending. The minister of state for ports, shipping and waterways, Shantanu Thakur, said India pays close to $75 bn annually to foreign shipping lines to transport crude oil, natural gas, coal and urea. The plan was discussed at the National Shipping Board's first Sagar Samvad and forms part of a five pillar roadmap to make Indian flagged shipping more competitive. Industry representatives said Indian flagged vessels face a 16 to 20 per cent cost disadvantage compared with foreign flagged ships, citing taxes on imports, maintenance services and higher domestic financing costs. The shortfall is intensified by tax treatment of seafarers' wages and freight income and by the Right of First Refusal framework, which requires domestic owners to match foreign freight rates to secure cargo. That combination makes fleet expansion difficult despite strategic reasons to increase domestic tonnage. The NSB panel proposed fiscal reforms, assured cargo support, access to competitive financing, regulatory streamlining and improved ease of doing business, and said these measures could enable the addition of 100 ships in five years. The government is pursuing Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047 and is targeting a quadrupling of port capacity to 10 bn t annually by 2047. The Rs 100 bn Container Manufacturing Assistance Scheme has already attracted orders from a global shipping major. Officials said expansion will require long term, low cost capital and a stronger domestic maritime ecosystem, including shipbuilding and skilled employment. Labour ministry officials said India's seafarer pool could become a significant source of employment as global demand rises. India's fleet comprises 1,544 vessels, including 492 overseas and 1,052 coastal vessels, and gross tonnage (GT) crossed 14.2 mn in March after 92 vessels were added in FY26, contributing a combined GT of 1.584 mn. The union minister for ports, shipping and waterways had earlier said the country may add about 62 vessels in FY27, creating an additional 2.85 mn GT capacity.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Bajaj Auto to Raise Monthly Electric 2W Capacity to 80,000 by March

Bajaj Auto plans to raise monthly production capacity for electric two-wheelers to around 80,000 units by the end of March, as demand for its Chetak electric scooter continues to exceed available output. The company currently has capacity for around 60,000 electric two-wheelers a month. Joint Managing Director Rakesh Sharma said production had returned to the existing full capacity after a supply chain disruption affected output. The issue had reduced recent production to around 40,000 units, resulting in a shortfall of 20,000 vehicles despite strong demand. The company expects to remove produ..

Next Story
Infrastructure Transport

India’s Domestic Air Passenger Traffic Falls 6.5% in September

India’s domestic air passenger traffic declined 6.49 per cent month on month to 11.8 mn in September, according to data released by the Directorate General of Civil Aviation (DGCA). IndiGo retained its leading position, carrying nearly two-thirds of domestic passengers, while the Air India Group remained the second-largest operator. IndiGo held a 65.4 per cent market share and transported 7.73 mn passengers during the month. The Air India Group accounted for 26.8 per cent of the market, carrying 3.165 mn passengers, based on data from the aviation regulator. Akasa Air ranked third with a 5.6..

Next Story
Infrastructure Urban

DPIIT Advances Trust-Based Governance Across India

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, is shifting India’s regulatory approach from permission-based administration to trust-based governance. The reforms seek to reduce business compliance, support startups, attract investment and simplify approvals across the country. According to an official statement, 47,957 compliance requirements have been reduced across Central Ministries and States and Union Territories. Of these, 22,290 have been digitised, 16,141 simplified, 5,255 decriminalised and 4,271 eliminated. The Jan..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code