India’s Minister of Ports, Shipping, and Waterways Sarbananda Sonowal announced a US$5.4 billion investment. The funds will add 62 vessels to the Indian merchant fleet in FY 2026-2027. This initiative aims to add 2.85 million gross tons to domestic maritime capacity.
Vessel Acquisition Targets
The government plans to secure container vessels and LPG carriers. It will also acquire crude oil tankers and green tugs. These 62 ships are separate from an ongoing effort by the Shipping Corporation of India to acquire 59 new vessels. Prime Minister Narendra Modi set a target for at least 20 percent of Indian exports to move on Indian-flagged vessels.
Currently, foreign-flagged ships transport approximately 90 percent of the nation’s trade. The new vessels will provide crucial capacity to alter this balance. Also Middle East exposed vulnerabilities in the supply chain.
Why is India changing its cabotage regulations?
India is ending waivers for foreign ships in transshipments and cargo movement between domestic ports to increase domestic control over shipping. The government aims to grow transshipping volumes from the current 20 percent to 75 percent by 2030.
These revised rules prompted major global carriers to transfer tonnage into the Indian registry. Carriers shifting registrations include CMA CGM and Maersk. Mediterranean Shipping Corporation and Hapag-Lloyd are also transferring tonnage. CMA CGM is transferring its sixth containership from Malta’s registry to India this month.
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Shipbuilding and Supply Chain Directives
The government is developing financial programs to support new vessel construction and industry expansion. Policy directives call for domestic yards to expand capacity and establish new shipbuilding clusters. The ultimate goal is for India to rank as a top 5 shipbuilding nation by 2047.