Government targets re-flagging of 300 foreign ships by 2030

By Admin

08 Dec, 2025

India is intensifying its maritime transformation with an ambitious plan to re-flag at least 300 foreign-owned vessels by 2030. This strategic push aims to expand the national fleet, boost supply chain resilience, and significantly reduce logistics and freight costs for EXIM cargo.

Growing Momentum in Re-Flagging
According to officials, the re-flagging of nearly 50 vessels is already in progress and is expected to be completed within the next three months. Encouragingly, around 11 major global shipping lines have shown interest in shifting a portion of their fleets to the Indian registry a signal of deepening trust in India’s maritime governance and regulatory reforms.

Re-flagging allows a vessel to operate under Indian maritime law and be listed in the country’s official shipping registry. This enables ships to carry domestic cargo, better support exporters especially MSMEs and retain a higher share of freight earnings within India. It also strengthens national preparedness during global disruptions by enhancing supply chain stability.

Strategic Benefits for India’s Maritime Sector
A stronger Indian-flag fleet is expected to reduce dependence on foreign carriers and limit exposure to volatile global freight rates. This shift is crucial for cost rationalisation in EXIM logistics. Lower transaction and logistics costs, officials say, will ultimately boost the global competitiveness of Indian products.

Currently, India operates around 1,600 merchant vessels with a combined gross tonnage of about 14 million tonnes. However, the country still spends nearly $75 billion each year on chartering foreign ships and holds only 2% of global fleet capacity. The re-flagging initiative is designed to narrow this deficit and enhance maritime self-reliance.

Policy Push: FY26 Incentives to Accelerate Re-Flagging
To speed up the programme, the government has introduced a range of incentives in FY26, including:
• Priority allocation of government cargo to Indian-flagged vessels.
• Tax exemptions for ships leased through GIFT City.
• Extended benefits for Indian ship management companies hiring crew.
• Concessions on port tariffs and maritime services under the Union Budget 2025–26.

Additionally, the Budget announced a massive ₹70,000-crore package for shipbuilding, ship repair, and port modernisation. Shipyards have now been classified as infrastructure, granting them access to long-term financing, smoother capital flows, and attractive tax benefits steps intended to enhance fleet expansion and draw global carriers to anchor assets in India.

Major maritime infrastructure upgrades, including the ₹76,000-crore Wadhwan Port and capacity expansion at several non-major ports, are further reinforcing this policy framework.

Global Carriers Begin Re-Flagging in India
The policy incentives are already delivering results. French shipping giant CMA CGM will register four vessels under the Indian flag, beginning with CMA CGM Vitoria in April 2025. The company has also ordered six LNG-powered 1,700-TEU vessels worth ₹3,000 crore from Cochin Shipyard.

Mediterranean Shipping Co (MSC) is preparing to re-flag 12 container ships, while Maersk has already shifted Maersk Vilnius and Maersk Vigo from the Singapore registry to India acknowledging India’s “progressive maritime reforms”.

Paving the Path to Maritime Self-Reliance
With strong regulatory reforms, infrastructure upgrades, and strategic fiscal support, India’s goal of bringing 300 foreign ships under its national flag by 2030 is well within reach. The re-flagging drive is poised to reshape India’s maritime landscape, reduce foreign dependency, and secure a greater share of the global shipping economy strengthening the nation's journey toward maritime self-reliance.