India is planning to expand its domestic shipping fleet by up to 100 vessels over the next five years as the government seeks to reduce the country’s reliance on foreign shipping lines and lower freight costs.
The plan was discussed at a meeting of the reconstituted National Shipping Board, which advises the Ministry of Ports, Shipping and Waterways on the development of the country’s maritime sector.
India currently spends an estimated US$75 billion annually on foreign freight, highlighting the need to strengthen its domestic shipping capacity.
The government also aims to expand port capacity to 10 billion tonnes by 2047 and encourage domestic ship and container manufacturing. Among the initiatives is the Container Manufacturing Assistance Scheme, which has secured container orders from global shipping company Maersk.
Industry representatives noted that operating vessels under the Indian flag remains around 16 to 20 percent more expensive than foreign flags, citing higher taxes, maintenance costs, seafarer wages and financing costs.
The government plans to address these challenges through regulatory reforms, expanded seafarer training and improved welfare measures, while creating new opportunities in areas including cruise shipping and shipbuilding.
The National Shipping Board proposed a five-pillar roadmap: fiscal reform, assured cargo support, access to competitive financing, regulatory streamlining, and improved ease of doing business (EODB). It said that if the measures are adopted, it could help India add 100 ships to its fleet within five years, and achieve its goal of ranking among the world’s top five ship-owning nations.
