Sonowal outlines a maritime finance ecosystem spanning ship ownership, leasing, financing, insurance and broking as India seeks to increase the tonnage it owns and controls
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Key Takeaways
- India is seeking to develop GIFT IFSC as a global platform for ship ownership, leasing and maritime finance.
- The government says 38 ship lessors are currently registered, collectively leasing 43 vessels with total leasing capacity exceeding 2.99 million DWT.
- 24 of those vessels fly the Indian flag, according to the Ministry’s announcement.
- 41 domestic and international banks have established a presence in the IFSC, with the government stating that they have extended close to US$60.1 million in funding to ship-leasing entities.
- Sonowal highlighted regulatory changes allowing GIFT IFSC-based shipping companies to own foreign-flag vessels, potentially broadening India’s concept of fleet ownership beyond Indian-flag tonnage.
- The government also highlighted the Coastal Shipping Act, 2025 and associated reforms as part of the effort to make Indian shipping more competitive. (Ministry of Shipping)
- The ₹25,000-crore Maritime Development Fund and the ₹24,736-crore Shipbuilding Financial Assistance Scheme are being positioned as major financial pillars supporting India’s maritime ambitions. (Ministry of Shipping)
- IFSCA already has a dedicated ship-leasing regulatory framework, updated in May 2026, providing a regulatory foundation for the sector. (Ifsca)
- The government’s ambition is moving from “ships flying the Indian flag” to “ships owned and controlled by Indian interests”, potentially expanding India’s economic influence across the global maritime value chain.
- The real test will be whether GIFT City can develop a sufficiently deep ecosystem of capital, shipowners, lessors, lenders, insurers, brokers, technical managers and maritime professionals to compete with established global maritime-finance centres.
Ahmedabad / Gandhinagar, Gujarat, India, September 11 (Maritime News) –India is positioning GIFT City International Financial Services Centre (GIFT IFSC) as the financial platform for a broader maritime strategy that goes beyond increasing Indian-flag tonnage to building India’s capacity to own, lease, finance, insure and manage ships.
Union Minister for Ports, Shipping & Waterways Sarbananda Sonowal made the case at the India Ship Leasing and Financing Summit at GIFT City, Gandhinagar, on September 10, where policymakers, shipowners, lessors, charterers, financiers and other maritime stakeholders discussed the development of India’s ship ownership, leasing and financing ecosystem.
The summit was organised by the International Financial Services Centres Authority (IFSCA) in collaboration with the Ministry of Ports, Shipping and Waterways (MoPSW). The government’s objective, as outlined by Sonowal, is to use GIFT City to build a wider maritime financial ecosystem covering ship leasing, ownership, financing, insurance, broking and ancillary services. (Press Information Bureau) Read the PIB release on India’s ship ownership, leasing and maritime finance strategy
From Indian Flag Tonnage to Indian-Owned Tonnage
One of the most significant aspects of Sonowal’s address was the change in the way India could measure the strength of its shipping sector.
Traditionally, maritime strength is often discussed in terms of Indian-flag vessels and gross tonnage.
Sonowal argued for a broader approach: measuring India’s fleet not only by the tonnage that flies the Indian flag, but also by the tonnage that Indian interests own and control.
The government says GIFT IFSC-based shipping companies are now permitted to own foreign-flag vessels.
That potentially gives Indian shipowners greater flexibility in structuring international shipping operations.
The distinction is important.
A vessel does not necessarily have to fly the Indian flag for Indian capital, ownership or commercial control to participate in the vessel’s economic value.
The policy direction therefore seeks to expand India’s maritime footprint from flag presence to ownership and control.
GIFT City Becomes the Financial Layer of India’s Maritime Ambition
GIFT IFSC is being positioned as the platform through which different parts of the maritime financial ecosystem can come together.
That ecosystem can include:
Shipowner → Lender → Ship Leasing Company → Insurer → Broker → Charterer → Technical/Commercial Manager
The objective is to enable more of these financial and commercial functions to be undertaken within India’s own international financial centre.
The IFSCA’s official framework for ship leasing provides the regulatory foundation for ship-leasing activity within the IFSC. The framework was updated on May 20, 2026. (Ifsca)
This matters because ship finance is not simply about obtaining a loan to buy a vessel.
It involves a broader financial architecture covering:
- Acquisition finance
- Leasing
- Sale-and-leaseback structures
- Debt
- Equity
- Insurance
- Risk management
- Chartering
- Asset management
- Vessel valuation
- Residual-value risk
- Regulatory compliance
A successful maritime finance centre needs all of these components to function together.
38 Ship Lessors and 43 Vessels: India’s Emerging Leasing Base
According to the figures cited by Sonowal, India now has 38 registered ship lessors, collectively leasing 43 vessels with total leasing capacity exceeding 2.99 million DWT.
Of these vessels, 24 fly the Indian flag.
The numbers indicate that the ship-leasing ecosystem is still developing, but has already moved beyond the purely conceptual stage.
The government’s objective is to build sufficient scale for GIFT City to become a platform from which Indian and international maritime businesses can structure vessel ownership and leasing transactions.
Banks Are Becoming Part of the Maritime Finance Ecosystem
Sonowal said 41 domestic and international banks have established themselves in the IFSC and have extended close to US$60.1 million in funding to ship-leasing entities.
This is an important component of the proposed ecosystem.
Ship acquisition is capital-intensive, and the ability to access competitive financing can influence whether an Indian shipping company buys, leases or charters vessels.
The presence of banks in GIFT IFSC can potentially bring financing decisions closer to the maritime businesses using the platform.
However, scale will matter.
The long-term question is whether GIFT City can attract much larger pools of global maritime capital and become a regular financing destination for vessel acquisitions and leasing transactions.
The Opportunity for Indian Shipowners
The emerging framework could give Indian shipowners more options in structuring their fleets.
Instead of relying solely on:
Indian Owner → Indian-Flag Vessel
the ecosystem could support more flexible structures involving:
Indian Owner → GIFT IFSC Entity → Foreign-Flag Vessel
subject to the applicable regulatory, tax, financing and operational requirements.
The government’s policy direction is particularly relevant for owners seeking to operate internationally, where commercial flexibility in vessel registration, financing and ownership structures can influence competitiveness.
The objective is therefore not simply to increase the number of vessels registered in India.
It is to increase the economic ownership and control of global shipping assets by Indian interests.
Coastal Shipping Reforms Add Another Layer
Sonowal also referred to the exemption from licensing requirements under the Coastal Shipping Act, 2025 for foreign vessels on charter, as part of the reforms intended to improve the competitiveness of Indian shipping.
The Act itself states that its purpose includes promoting coasting trade and encouraging domestic participation while developing an Indian-owned and operated coastal fleet. (Ministry of Shipping)
The Ministry of Ports, Shipping and Waterways has also been developing rules under the new Act, including rules concerning the licensing of foreign vessels. (Ministry of Shipping)
These reforms are relevant to shipowners and charterers because the regulatory framework determines how easily vessels can be deployed in different markets and under different commercial structures.
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What Does This Mean for Indian Shipping Companies?
For Indian shipping companies, the GIFT IFSC ecosystem could potentially bring several functions closer together:
Vessel acquisition
Access to specialised maritime financing can support fleet expansion.
Leasing
Companies may have alternatives to direct vessel acquisition.
Foreign-flag ownership
GIFT IFSC-based companies can potentially own foreign-flag vessels under the framework highlighted by the government.
Insurance
The government wants insurance to become part of the broader maritime financial ecosystem.
Broking
Shipbroking can become another financial and commercial service located within the same ecosystem.
Asset management
Shipowners and financial investors need professional management of vessel assets throughout their lifecycle.
The opportunity is therefore much larger than simply creating ship-leasing companies.
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The ₹25,000-Crore Maritime Development Fund
The government’s broader maritime-finance strategy also includes the ₹25,000-crore Maritime Development Fund (MDF).
The Ministry’s maritime investment framework identifies the MDF as a major pillar for strengthening India’s EXIM shipping backbone. (Ministry of Shipping)
Sonowal said the fund is expected to catalyse investments of up to ₹1.5 lakh crore by 2030.
That makes the fund potentially important not only for ports and infrastructure but for the wider financing ecosystem supporting Indian maritime assets.
The crucial question will be how effectively the fund mobilises private capital alongside government-backed financing.
Shipbuilding and Ship Ownership Need to Grow Together
Ship ownership cannot be separated from shipbuilding.
If India wants a larger Indian-controlled fleet, it also needs competitive domestic shipbuilding and ship-repair capabilities.
The government has therefore linked the maritime strategy with Shipbuilding Financial Assistance Scheme (SBFAS) 2.0.
The Ministry’s published framework provides an overall outlay of ₹24,736 crore, including ₹20,554 crore for financial assistance to Indian shipyards, with the scheme extending to March 2036, and ₹4,001 crore for the ship-breaking credit-note component. (Ministry of Shipping)
India’s Shipbuilding Financial Assistance framework
This creates a potential cycle:
Finance → Ship Acquisition → Indian Ownership → Shipbuilding → Ship Repair → Employment → Maritime Services
If these elements develop together, India could retain more maritime economic value domestically.
From Ship Ownership to a Complete Maritime Value Chain
Sonowal described the ambition as a comprehensive maritime value-chain ecosystem covering:
- Ship ownership
- Ship leasing
- Ship financing
- Insurance
- Broking
- Ancillary services
This is strategically important because the economic value generated by a ship extends far beyond freight revenue.
A vessel generates business for:
Banks + insurers + brokers + ship managers + classification societies + technical service providers + ports + shipyards + repair yards + legal firms + charterers + maritime technology companies + professional services.
A maritime finance centre can therefore potentially create a broader ecosystem around each vessel.
What About Indian Seafarers?
The ship-finance strategy also has a human dimension.
More Indian-owned or Indian-controlled vessels could potentially create additional demand for:
- Indian seafarers
- Marine engineers
- Ship managers
- Naval architects
- Maritime lawyers
- Marine insurers
- Shipbrokers
- Technical superintendents
- Maritime accountants
- Maritime financiers
- Digital maritime professionals
However, increased vessel ownership does not automatically translate into Indian employment on every vessel, particularly where foreign-flag vessels are involved.
The policy outcome should therefore be measured not only by DWT owned by Indian interests, but also by the extent to which the resulting maritime ecosystem creates Indian jobs, skills and professional services.
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The Challenge: Can GIFT City Compete with Established Maritime Finance Centres?
The government’s ambition is substantial.
But maritime finance is a global business with established centres, institutions, professional networks and specialised expertise.
GIFT City therefore has to compete not merely on regulatory incentives.
It needs:
Deep maritime expertise
Ship finance requires specialists who understand vessel markets, charter rates, asset values, technical risk and shipping cycles.
Global capital
International banks, funds and institutional investors need confidence that GIFT IFSC can provide competitive and predictable financial structures.
Maritime insurance
A strong ship-finance ecosystem needs insurance and risk-management capacity.
Shipbroking
Owners and financiers require access to global chartering and vessel-sale markets.
Legal and professional services
Complex vessel-financing structures require specialised maritime legal, accounting and advisory expertise.
Secondary-market depth
A financial centre becomes stronger when vessels can be bought, sold, leased, refinanced and restructured efficiently.
Compliance and Regulatory Certainty Will Matter
Ship leasing and financing involve substantial regulatory complexity.
Investors and shipowners need clarity around:
- Ownership structures
- Flag
- Taxation
- Leasing arrangements
- Foreign exchange
- Financing
- Security interests
- Insurance
- Chartering
- Repatriation
- Insolvency
- Vessel registration
- Environmental requirements
IFSCA’s continued development of the ship-leasing framework is therefore important. The regulator maintains a dedicated legal and regulatory framework for Ship Leasing within GIFT IFSC. (Ifsca)
The next stage will be whether the regulatory environment becomes sufficiently predictable and efficient for international maritime transactions.
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India’s Maritime Ambition Is Becoming More Asset-Focused
The government’s policy language suggests a broader shift in how India’s maritime strength is measured.
The objective is not only:
How many ships fly the Indian flag?
It is increasingly:
How much maritime capacity does India own, control, finance, insure and service?
That is a more comprehensive economic measure.
A foreign-flag vessel owned by an Indian-controlled company can still contribute to India’s maritime economic footprint through ownership returns, financing, insurance, management and professional services.
This is the strategic significance of Sonowal’s statement about moving from flag tonnage to owned and controlled tonnage.
Maritime Development Fund and Shipbuilding Finance Need to Work Together
The two major financial initiatives cited by the Minister can potentially address different parts of the maritime ecosystem.
Maritime Development Fund
Potentially supports maritime investment and the broader EXIM shipping ecosystem.
Shipbuilding Financial Assistance Scheme
Supports domestic shipbuilding competitiveness and shipyard development.
GIFT IFSC
Provides the proposed financial platform for ship leasing, ownership, financing, insurance and related services.
The opportunity is to connect all three:
GIFT IFSC → Finance → Shipowner → Shipyard → Vessel → Charter Market → Indian Maritime Services
If these components remain fragmented, the economic impact could be limited.
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What Government Needs to Build Next
The next phase should focus on ecosystem depth rather than simply registration numbers.
India can strengthen GIFT City’s maritime finance ambitions by developing:
1. A global maritime-finance talent pool
Training specialists in ship finance, leasing, insurance, valuation and maritime law.
2. International maritime banking capability
Attracting banks with specialised shipping portfolios and global relationships.
3. Maritime insurance capacity
Building a deeper marine-insurance and reinsurance ecosystem.
4. Shipbroking ecosystem
Encouraging international and Indian shipbroking firms to establish specialised operations.
5. Vessel valuation and asset-management capability
A mature ship-finance centre requires independent expertise in vessel valuation and asset management.
6. Maritime legal services
Developing specialist legal capability around vessel finance, leasing, mortgages, chartering and restructuring.
7. Global outreach
GIFT IFSC must be marketed not only to Indian shipowners but also to international shipowners, lessors, lenders and investors.
Way Forward: From GIFT City Platform to Maritime Finance Hub
The government’s immediate achievement is establishing the regulatory and institutional foundation.
The next test is scale.
India needs to move from:
38 lessors and 43 vessels
towards an ecosystem where international shipping companies routinely consider GIFT IFSC when financing, leasing, acquiring, insuring or restructuring vessels.
That will require predictable regulation, competitive financing, specialist professionals and deep global connections.
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MaritimeNews Insight
India’s maritime ambition is entering a different phase.
For decades, the country’s maritime conversation has often centred on ports, cargo, shipbuilding and Indian-flag tonnage.
The GIFT City strategy adds another layer:
Who owns the ship? Who finances it? Who leases it? Who insures it? Who manages the asset? And where does the economic value of that transaction accrue?
That is the strategic question behind India’s emerging maritime-finance ecosystem.
The government’s decision to permit GIFT IFSC-based shipping companies to own foreign-flag vessels is particularly significant because it broadens the concept of Indian maritime strength beyond the flag.
But ownership alone will not create a global maritime hub.
India will need to build the entire ecosystem around the asset — finance, insurance, broking, legal services, ship management, valuation, technical expertise and global capital.
GIFT City can provide the financial platform.
The real test will be whether India can make that platform sufficiently deep, competitive and globally connected for shipowners and investors to choose it as a normal part of their international maritime business.
If that happens, India’s maritime growth could increasingly be measured not only by ships sailing under the Indian flag, but by the global fleet assets owned, financed, insured and controlled through Indian institutions.
Stakeholder Impact
| Stakeholder | Potential opportunity | Key challenge |
|---|---|---|
| Indian Shipowners | Access to new ownership and financing structures | Global competitiveness and cost of capital |
| Ship Lessors | Expansion of leasing business from GIFT IFSC | Building scale and global customer base |
| Banks | New maritime lending opportunities | Shipping-cycle and asset-value risk |
| Insurance Companies | Marine insurance and reinsurance growth | Specialist underwriting capacity |
| Shipbrokers | More ownership, leasing and chartering activity | Building global market depth |
| Shipyards | Potential increase in Indian-owned fleet orders | International cost competitiveness |
| Ship Managers | More vessels requiring professional management | Global service standards |
| Seafarers | Potential additional employment from fleet growth | Indian employment depends on ownership, flag and crewing arrangements |
| Maritime Professionals | Growth in finance, legal, insurance and asset management | Need for specialised talent |
| GIFT IFSC | Opportunity to become a global maritime-finance centre | Competition from established global hubs |
| Government | Greater Indian maritime ownership and financial value creation | Turning policy framework into large-scale market activity |
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Frequently Asked Questions (FAQs)
What is India’s main objective at GIFT City?
The government wants GIFT IFSC to become a platform for ship ownership, leasing, financing, insurance, broking and related maritime services.
How many ship lessors are currently registered?
The Minister said 38 ship lessors are registered, collectively leasing 43 vessels with leasing capacity exceeding 2.99 million DWT.
How many of these vessels fly the Indian flag?
According to the Minister’s statement, 24 of the 43 vessels fly the Indian flag.
Can GIFT IFSC companies own foreign-flag vessels?
The Minister said GIFT IFSC-based shipping companies have been permitted to own foreign-flag vessels, subject to the applicable regulatory framework.
What is the Maritime Development Fund?
The government has announced a ₹25,000-crore Maritime Development Fund, which Sonowal said could catalyse investments of up to ₹1.5 lakh crore by 2030.
What is SBFAS 2.0?
The Shipbuilding Financial Assistance Scheme has an overall outlay of ₹24,736 crore, with financial assistance intended to strengthen the competitiveness of Indian shipyards. (Ministry of Shipping)
Why is ship leasing important?
Leasing can provide shipowners and operators with an alternative to direct vessel acquisition and can bring financing, asset management and vessel ownership into a specialised financial ecosystem.
Can GIFT City become a global maritime finance hub?
It has the regulatory and institutional foundation, but achieving global-hub status will depend on scale, international capital, specialist talent, maritime services and the competitiveness and predictability of its regulatory environment.
Sources
Primary source: Press Information Bureau — Ministry of Ports, Shipping and Waterways
Additional primary sources:
- IFSCA — Framework for Ship Leasing
- IFSCA — Regulatory and legal framework
- Ministry of Ports, Shipping and Waterways — Coastal Shipping Act, 2025
- MoPSW — Acts and Rules
- MoPSW — Shipbuilding Financial Assistance Scheme / maritime investment framework
Important sourcing note: The figures of 38 lessors, 43 vessels, 2.99 million DWT, 24 Indian-flag vessels, 41 banks and US$60.1 million in funding, as well as the Minister’s statements on GIFT IFSC ownership of foreign-flag vessels, are attributed to the September 10 PIB release. The analysis of opportunities, challenges and the way forward above is MaritimeNews analysis and should not be presented as an existing government commitment.
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Reporting by MaritimeNews Bureaus, Writing by Harpal S Naol; Editing by Jaspal Singh Naol.
