India eyes 100 more vessels to cut forex outgo
New Delhi: India aims to add 100 more flagged vessels over the next five years, according to Union Ports, Shipping & Waterways Minister Sarbananda Sonowal. The minister emphasized this move would aid in reducing India's foreign freight expenses.
Presently, there are approximately 1,600 domestic-flagged ships operating in the country. Shipping’s Minister of State Shantanu Thakur revealed that India currently spends nearly $75 billion annually on freight to foreign shipping lines for transporting essential commodities such as crude oil, gas, coal, and urea.
Industry representatives at the event highlighted that flying the Indian flag is currently 16% to 20% more expensive than operating under a foreign flag. The disparities, they explained, stem from India's tax on ship imports, maintenance services, tax on seafarers' wages, freight tax, and higher domestic capital costs, which foreign competitors do not bear.
The National Shipping Board unveiled a five-pillar roadmap during the event. This strategy encompasses fiscal reform, assured cargo support, access to competitive financing, regulatory streamlining, and improved ease of doing business.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
