The ministry of ports, shipping and waterways is preparing to roll out about 20 sectoral reforms in the first 90 days of FY27, including the creation of a maritime sector regulator, revamped shipbuilding incentives and measures to increase India’s shipping tonnage, as part of a plan to strengthen the country’s maritime ecosystem and cut logistics costs.
The reform push, which is being finalized, is aimed at improving regulatory oversight, boosting domestic shipbuilding, increasing the share of Indian-flagged vessels in global trade and enhancing the ease of doing business across ports, shipping and inland waterways, two people aware of the matter said.
“Reform measures like a dedicated maritime regulator, stronger support for and container manufacturing, and a push toward inland waterways and coastal shipping are especially impactful. They not only build domestic capacity but also make logistics more cost-effective and sustainable,” said Pushpank Kaushik, CEO and head of business development at Jassper Shipping, a global shipping and logistics company in Hyderabad.
A key proposal under consideration is the setting up of a strengthened maritime regulator by expanding the role of the Directorate General of Shipping, which would be given wider powers over safety regulation, maritime training, ship registration and oversight of shipping operations. The move is aimed at creating a modern regulator in line with global maritime nations. The DG Shipping will be rechristened as the Directorate General of Maritime Administration.
The ministry is working on revamped shipbuilding guidelines and a new framework to promote shipbuilding clusters in India, with the aim of increasing domestic capacity and reducing dependence on foreign yards. India has set a long-term target of becoming one of the top shipbuilding nations by 2047. The Shipbuilding Financial Assistance Policy update would aim at encouraging public sector units to form joint ventures for owning and operating Indian-built vessels.
Financing facility
Officials said the government is looking to operationalize the proposed , a ₹25,000 financing facility aimed at providing long-term, low-cost funding for shipbuilding and maritime infrastructure. The fund is expected to play a key role in supporting domestic shipyards and encouraging fleet expansion by Indian shipping companies.
The reform package will include policy measures to increase the number of Indian-flagged ships, including changes in tax, financing and regulatory norms, to make it more attractive for shipowners to register vessels in India rather than in foreign jurisdictions.
“Shipping is global, capital-intensive and tightly regulated, so without consistent reforms, inefficiencies and higher costs can quickly creep in. What these changes do is create a more stable and predictable environment where businesses can operate with greater clarity and confidence,” said Kaushik.
The reform push is part of the government’s maritime strategy under the Sagarmala programme and the Maritime Amrit Kaal Vision 2047, which aim to modernize ports, promote green shipping and strengthen India’s position in global maritime trade.
Among the reforms planned are updates to key maritime laws including the merchant shipping framework, coastal shipping regulations and port laws to simplify procedures, improve safety oversight and encourage greater private investment.
In addition, the government plans to continue its push towards cleaner shipping through initiatives such as green port guidelines, promotion of green hydrogen and cleaner fuels and the transition to cleaner harbour craft including green tugs at major ports.
The coastal cargo promotion scheme proposed in Budget 2026-27 will be launched with the aim of doubling the share of coastal shipping and inland waterways from 6% to 12% by 2047. There is a plan to provide a 40% discount on vessel and cargo charges at major ports for coastal vessels, along with the implementation of green channel clearances to speed up domestic cargo movement.
Skill development
The ministry with the Korea International Cooperation Agency on 2 April for skill development in the sector. One person said work will begin on the Shipbuilding Workforce Development and Technology Cooperation Centre in the next three months. This includes identifying skill gaps in the Indian workforce and launching workshops to align Indian shipbuilding standards with South Korean technology.
Officials said the reform measures will focus on improving ease of doing business in the maritime sector through digital platforms, faster dispute resolution mechanisms and simplified approval processes for maritime infrastructure and shipping operations.
The ministry has been working on measures to improve maritime domain awareness and vessel monitoring systems to enhance safety and regulatory oversight, particularly in the wake of rising geopolitical risks affecting global shipping routes.
Currently, less than 5% of India’s export-import cargo is carried by Indian-owned ships and an even smaller share of these vessels are built domestically. This results in a significant foreign exchange outgo of almost $75 billion each year to foreign shipowners for freight services.
As India’s economy grows, the volume of seaborne trade is expected to expand substantially, making it imperative to strengthen domestic shipping and shipbuilding capacity.
“Reform initiatives are therefore critical to increasing Indian ship ownership and ensuring greater control over the country’s cargo and trade, which is essential for both energy and economic security, particularly during periods of global disruptions or conflict,” said Nilachal Mishra, partner and head, government and public services at KPMG in India.
Queries mailed to the ministry of ports, shipping and waterways remained unanswered till press time.