The Indian government is setting up a new domestic shipping company to reduce reliance on foreign vessels and capture a larger share of freight revenue. This initiative aims to address the significant outflow of capital spent on employing foreign ships for Indian trade movements.
The new company will be a joint venture between state-owned entities operating in sectors like oil, gas, and fertilizers. It will be headquartered in GIFT City, Gujarat, and benefit from a seed capital of around Rs. 30,000 crore from a maritime development fund.
While details about the company’s name and exact launch date are yet to be revealed, industry estimates suggest that foreign companies currently handle around 75% of India’s shipping needs. This new venture signifies the government’s commitment to strengthening the domestic shipping industry and promoting self-reliance in the maritime sector.
Source: Maritime Gateway