POLICY CHANGES TO EXPAND INDIGENOUS FLEET
POLICY CHANGES TO EXPAND INDIGENOUS FLEET
A significant share of India’s trade depends on foreign shipping. To reduce this dependence and expand the indigenous fleet, the Government has introduced several reforms: –
The steps taken to enhance maritime awareness and safety of Indian ships at chokepoints includes round-the-clock monitoring through Mercantile Marine Domain Awareness Centre (MMDAC), real-time incident tracking and close coordination with the Indian Navy and other agencies. Periodic Maritime Security Advisories are issued to Indian-flagged vessels, prescribing risk-mitigation measures and compliance with Standard Operating Procedures (SOPs) and Best Management Practices (BMPs). Regular meetings are held with Indian shipowners, shipmasters, port authorities, the Indian Navy, Coast Guard, and other security agencies to enhance preparedness and response mechanisms.
This information was given by the Union Minister of Ports, Shipping and Waterways, Shri Sarbananda Sonowal Ji, in a written reply to the Rajya Sabha.
- The Merchant Shipping Act, 2025 has been enacted to modernise the legal framework, improve ease of doing business, and encourage Indian flagging of ships. Indian-flagged vessels are promoted through the Right of First Refusal (RoFR), simplified ship registration, and other regulatory reforms.
- Shipping vessels, of more than a certain size, have been classified as infrastructure assets to enable easier access to finance.
- Further, initiatives such as the Shipbuilding Financial Assistance Scheme, Ship Breaking Credit Note, Shipbuilding Development Scheme and the Maritime Development Fund support the long-term financing needs of the shipbuilding sector.