GIFT City Gets Major Ship-Leasing Boost as Govt Eases Flagging Rules.

IFSC Units Can Own and Register Foreign-Flag Ships, Strengthening India’s Global Maritime Finance Hub

The Union government has significantly eased ship registration and leasing rules for entities operating from GIFT City’s International Financial Services Centre (IFSC), aiming to make India more competitive as a global ship-leasing hub. Under the relaxed Indian Controlled Tonnage (ICT) framework, eligible GIFT City financial institutions can now own and register ships under foreign flags without several restrictions applicable to fleet owners operating from the Domestic Tariff Area (DTA). The move addresses two key demands raised by the International Financial Services Centres Authority (IFSCA). The government has also allowed IFSC entities to lease foreign-flagged vessels without obtaining certain permits under the Coastal Shipping Act, 2025. However, GIFT City-owned foreign-flag vessels will not receive Right of First Refusal (RoFR) benefits. The new rules also enable vessels acquired through bareboat charter-cum-demise (BBCD) arrangements to be registered under the Indian flag before full payment of instalments. The reforms are expected to attract global ship owners, improve access to financing, and strengthen India’s coastal shipping sector.