Government eases maritime rules to strengthen GIFT City as a global ship leasing and logistics hub.

GIFT City Units Exempted from DGMA Licence for Chartering Foreign-Flag Ships.

The Central Government has exempted entities operating from the International Financial Services Centre (IFSC) at GIFT City from obtaining a licence from the Directorate General of Maritime Administration (DGMA) to charter foreign-flagged ships. The decision, notified on July 7 under the Coastal Shipping Act, 2025, is expected to make GIFT City more competitive with global maritime hubs and encourage Indian shipping businesses operating overseas to relocate to India. Industry experts believe the reform will simplify ship leasing, reduce regulatory hurdles, and strengthen India’s maritime finance ecosystem. The exemption applies to IFSC-based entities leasing foreign vessels, while domestic companies operating in the Domestic Tariff Area will continue to require DGMA licences. The government clarified that the Right of First Refusal (RoFR) policy protecting Indian-flag vessels remains unchanged. The move is expected to attract greater investment, promote dollar-based shipping transactions, and establish GIFT City as a leading international centre for ship leasing and maritime services.