New Delhi: India is targeting the addition of 100 vessels to its merchant fleet over the next five years as part of efforts to reduce dependence on foreign shipping lines, to which the country pays close to $75 billion annually in freight.
The proposal was discussed at the inaugural ‘Sagar Samvad’ organised by the National Shipping Board (NSB) in New Delhi, where Union Ports, Shipping and Waterways Minister Sarbananda Sonowal backed a five-point roadmap for strengthening Indian shipping.
The roadmap focuses on fiscal reforms, assured cargo support, access to competitive financing, regulatory streamlining and improving ease of doing business. The measures are intended to help expand India’s merchant fleet and improve the competitiveness of Indian-flagged vessels.
Minister of State for Ports, Shipping and Waterways Shantanu Thakur said India pays close to $75 billion every year to foreign shipping lines for transporting commodities including crude oil, natural gas, coal and urea. He said strengthening domestic shipping capacity would help reduce this dependence.
Industry representatives at the meeting said operating Indian-flagged ships is 16 per cent to 20 per cent more expensive than operating vessels under foreign flags. They cited taxes on ship imports and maintenance services, taxation related to seafarer wages and freight, and higher domestic financing costs among the factors contributing to the gap.
The meeting also discussed India’s Right of First Refusal mechanism, under which Indian shipowners are required to match foreign freight rates to secure cargo despite facing higher operating costs. Fiscal and financing reforms were identified as key measures for improving the competitiveness of domestic operators.
Sonowal said India is targeting port capacity of 10,000 million tonnes annually by 2047 and stressed the need for Indian shipowners to participate in the expected growth in maritime trade.
The Sagar Samvad also focused on expanding India’s maritime workforce. Labour and Employment Minister Mansukh Mandaviya called for greater training capacity, industry-led skilling and more employment opportunities for Indian seafarers, including in emerging segments such as cruise shipping.
The National Shipping Board is a statutory advisory body under the Merchant Shipping Act, 2025, and advises the government on matters related to shipping policy and development.
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