India’s merchant fleet to get 100 ships, but ageing fleet remains a hurdle

India intends to bolster its merchant fleet by adding 100 new vessels over the next five years, according to Union Minister Sarbananda Sonowal. The government aims to enhance the country's shipping tonnage through strategies such as reflagging foreign-owned vessels and promoting shipbuilding. However, a significant challenge remains: a large portion of India's existing fleet is already aging.

A recent report by the Ministry of Ports, Shipping and Waterways reveals that half of India's registered vessels are over 20 years old. As of December 2025, the country's shipping fleet consists of 1,592 vessels with a total gross tonnage (GT) of 14.02 million. The fleet is divided into various age categories, with the oldest vessels, those above 20 years, comprising 744 ships and 5.44 million GT, representing the largest age group.

The Directorate General of Shipping (DGS) has increased its oversight on older vessels, requiring prior technical clearance for acquisition of vessels aged 25 years and above. This scrutiny is even more stringent for older tankers. The fleet's overseas component, which constitutes a significant portion of India's merchant fleet tonnage, faces a more pronounced ageing issue. As of 2025, 41 percent of India's overseas trade fleet, totaling 503 vessels with 12.32 million GT, were over 20 years old.

The ageing situation is not evenly distributed across all vessel categories. Oil tanker (crude) vessels above 20 years account for just 13 ships and 1.09 million GT. Oil tanker product carriers in the same age bracket have 55 vessels and 1.23 million GT. Dry cargo bulk carriers include 41 vessels with 0.80 million GT in the above-20-year category. Dry cargo liners and tugs also have sizable fleets of older ships, with 80 and 184 vessels, respectively, exceeding 20 years.

While the introduction of 100 new ships is a commendable step, it may not translate into a substantial increase in the overall fleet size. This is because the pace of net growth in India's merchant fleet has been modest over the past decade, with a net increase of 346 vessels or approximately 35 vessels per year. The existing fleet of 1,246 vessels has grown to 1,592 vessels, an increase of 10.51 million GT to 14.02 million GT during the same period.

For the 100-ship target to result in a meaningful expansion, new additions must surpass the vessels that leave the fleet due to aging or reduced commercial viability.