India continues to have a minor share in the international shipping sector and has been forced to become a net importer of shipping services, especially ship financing.

This is despite the country having a large coastline, a growing domestic market and international maritime trade, deep-rooted maritime traditions and skilled seafarers.

The report, Ship Acquisition, Financing and Leasing (SAFAL), was submitted to the International Financial Services Centers Authority (IFSCA) on October 28, 2021 by the International Financial Services Centers (IFSC) Ship Acquisition, Financing and Leasing Development Pathways Committee.

The committee was constituted by IFSCA on June 24, 2021 under the chairmanship of Vandana Aggarwal with representatives from the Government of India, Gujarat Maritime Board, industry and finance experts and academicians.

Maritime transport is essential for India. Nearly half of India’s border is covered by the sea, with a coastline of some 7,517 km, with 12 major and 205 minor ports. In addition, India is strategically located on global shipping routes. The Ministry of Shipping has estimated that about 95% of India’s merchandise trade by volume and 70% by value is carried by sea transport.

 

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India needs to step up investment in its shipping sector