Middle path aims to balance offshore flexibility with protection of Indian shipping capacity.

Govt Considers Controlled Tonnage Model for GIFT City Ship Registration.

The government is weighing a proposal to allow entities operating from GIFT City to register ships overseas and in India in equal proportion, drawing inspiration from the Indian Controlled Tonnage framework. Under the proposed approach, a GIFT City entity could register one vessel abroad and the next in India, maintaining parity between foreign- and Indian-flagged ships. The move follows demands from the International Financial Services Centres Authority for greater flexibility to attract ship leasing and maritime finance firms. However, concerns within the government centre on protecting India’s domestic tonnage and preventing misuse of cargo support benefits such as the Right of First Refusal (RoFR). Officials say entities opting to flag ships overseas may face limits on such benefits. The proposal reflects a compromise between GIFT City operators and domestic fleet owners represented by the Indian National Shipowners Association, aiming to boost competitiveness while safeguarding national shipping interests.