Centre Exempts GIFT City Companies From DGMA Licence For Leasing Foreign Vessels

The Central Government has exempted companies operating from the International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City), Gandhinagar, from obtaining a licence from the Directorate General of Maritime Administration (DGMA) to charter foreign vessels. The decision was announced through a gazette notification issued under the provisions of the Coastal Shipping Act, 2025.

According to the notification, foreign vessels chartered by units established in the IFSC at GIFT City will no longer require a licence under Section 11 of the Coastal Shipping Act, 2025. The exemption has been granted under Section 37 of the Act and is expected to provide greater operational flexibility for companies engaged in international shipping and maritime-related businesses.

Before this exemption, foreign-flagged ships were required to obtain a licence from the DGMA before undertaking coastal shipping activities in Indian waters. The licensing requirement formed part of the regulatory framework governing the operation of foreign vessels under the Coastal Shipping Act, 2025.

Also Read: India Opens Government Power Sector Tenders To Four Chinese-Backed Companies

The Act has drawn criticism from sections of the shipping and commodity trading industry, which argued that the licensing provisions could make it more difficult for Indian entities involved in global commodity trading to charter foreign-flagged vessels exclusively for overseas operations. Industry participants had raised concerns that the rules could affect business efficiency and increase compliance requirements.

The latest exemption is expected to strengthen the attractiveness of GIFT City as an international financial and maritime services hub by easing regulatory procedures for companies operating from the tax-free financial centre. It is also likely to support businesses involved in ship leasing, maritime finance and global commodity trading by simplifying access to foreign vessels.

The move reflects the government’s efforts to promote GIFT City as a competitive international financial services destination while encouraging the growth of India's maritime and shipping ecosystem. By reducing regulatory hurdles for eligible entities, the exemption aims to facilitate international trade and enhance the ease of doing business in the sector.

Also Read: FSSAI Issues Notices To 14 Companies Over Misleading Organic And Healthy Claims