ports

India Reassesses Foreign-Flag Coastal Shipping Rules as Policy Review Extends

India's government is conducting a comprehensive review of cabotage regulations governing foreign-flag vessels in coastal waters. This marks a potential shift in maritime policy. The Directorate General of Shipping and tax authorities have been directed to submit recommendations within six months on revised frameworks permitting foreign carriers to transport domestic containers, export-import cargo and ro-ro goods on coastal routes. Officials anticipate that expanded foreign participation will increase service frequency and reduce freight costs by as much as 30% through heightened competition. Lower slot costs and improved hub-and-spoke network development are also expected outcomes. The policy reassessment follows the government's January revocation of 2018 cabotage reforms, though officials subsequently extended the unregulated window through October following industry appeals and Middle East disruptions requiring substantial third-country transhipment volumes at Indian ports.