The government expects around 300 foreign-owned ships to be re-registered under the Indian flag by 2030, to expand the domestic fleet and lower logistics costs, official sources told FE.
“The process to re-flag around 50 vessels has started and is expected to be completed in the next 3 months,” officials said. They added that nearly 11 global shipping majors have conveyed their intent to shift part of their fleets to the Indian registry, indicating rising confidence in the country’s maritime framework and regulatory predictability.
Economic Impact
Officials explained that re-flagging, which means changing the nationality of a vessel so that it falls under Indian maritime law, will allow the ships to be added to India’s registry and enable them to transport domestic cargo. According to them, the move is expected to help boost exports and make logistics more affordable, particularly for smaller exporters, over the next three years. “As a result, greater resilience in the supply chain is ensured during disruptions, and freight revenues are kept within the country,” officials said.
According to them, expanding the Indian-flag fleet could also generate savings in foreign exchange, reduce reliance on foreign-flag carriers that often influence freight rates, and help rationalise costs for India’s EXIM trade. Sources said that lower logistics and transaction costs would strengthen the competitiveness of Indian goods in global markets.
Policy incentives attracting global majors
The government has introduced a series of policy measures in 2025-26 to attract re-flagging. These include prioritising Indian-flagged ships for government cargo and offering tax exemptions for vessels leased through the Gujarat International Finance Tec-City (GIFT City). The Union Budget for 2025-26 further extended economic benefits for Indian ship management companies that hire crew, along with concessions on port charges and ancillary maritime services.
In the same Budget, the Centre announced a Rs 70,000-crore package for shipbuilding, ship repair and port modernisation. Shipyards have also been classified as infrastructure, allowing them access to long-term credit, tax concessions and smoother capital inflows. Officials said this broader policy environment is intended to support India’s long-term fleet expansion and encourage global carriers to anchor more assets in the country.
Large maritime and port projects such as the Rs 76,000-crore Wadhwan Port and capacity expansions across non-major ports are adding to the momentum, creating an ecosystem geared towards export-led growth.
Global shipping companies have begun responding to the incentives. French major CMA CGM has committed to registering four container ships under the Indian flag, beginning with CMA CGM Vitoria in April 2025, and has ordered six LNG-powered 1,700 TEU vessels at Cochin Shipyard worth Rs 3,000 crore. Mediterranean Shipping Co has confirmed plans to re-flag 12 container ships to the Indian registry.
Maersk, meanwhile, has shifted Maersk Vilnius and Maersk Vigo from Singapore to India, citing “progressive maritime reforms” and strong economic fundamentals.
India currently has about 1,600 merchant vessels with a total gross tonnage of 14 million tonne. The country spends an estimated $75 billion annually on chartering foreign ships, while owning only about 2% of global tonnage. Officials said the re-flagging programme is aimed at reducing this gap.