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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.

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