3 days ago
India Restores Shipping Relaxations Amid Global Capacity Disruptions
India has decided to let some foreign ships continue carrying certain goods between Indian ports.
This restores rules that were introduced in 2018.
The government had canceled those rules earlier this year.
It now says keeping them will help trade continue smoothly.
Global political problems have made it harder to find enough ships.
One expert said the decision gives businesses more certainty.
Another said India needs foreign ships to support exports and imports.
However, a former government official questioned why the rules were restored after being reviewed and withdrawn.
Indian-flagged shipping companies will still have to compete with foreign carriers.
The Shipping Ministry restored the 2018 relaxations for foreign-flagged vessels on August 10.
The rules allow foreign-flagged vessels to carry specified cargo between Indian ports.
The decision reversed January orders that had withdrawn the relaxations earlier this year.
Officials and industry experts said the move would preserve shipping capacity during geopolitical disruptions.
A former department official questioned why the government revived rules it had previously reviewed and withdrawn.
- Who
- India’s Shipping Ministry, foreign-flagged vessels, Indian shipping companies, exporters and importers, and maritime-sector experts.
- What
- The government restored the 2018 relaxations allowing foreign-flagged vessels to carry specified cargo between Indian ports.
- Where
- Between Indian ports, within India’s coastal trade.
- When
- The restoration was ordered on August 10 and reported on August 30, 2026; the arrangement is intended to continue until September.
- Why
- To maintain shipping capacity, policy stability and operational certainty amid geopolitical disruptions affecting global shipping.
Capacity and policy continuity
Review and domestic shipping concerns
Allowing foreign vessels
Capacity and policy continuity
Maritime trade expert Rajesh Menon said retaining the arrangement was necessary to ensure enough ships for India’s export-import trade during a serious geopolitical situation.
Review and domestic shipping concerns
The restoration means Indian-flagged companies will not receive exclusive access to eligible coastal cargo and must continue competing with foreign carriers.
Reversing the earlier withdrawal
Capacity and policy continuity
Crisil Intelligence’s Jagannarayan Padmanabhan said the decision maintains continuity and avoids another regulatory transition for shippers and shipping companies.
Review and domestic shipping concerns
A former department official questioned why the government revived rules that had been withdrawn after an extensive review, arguing that the stated justification was not sufficiently clear.
Key facts
- Decision
- The Shipping Ministry restored the 2018 coastal-trade relaxations.
- Affected vessels
- Foreign-flagged vessels may carry specified categories of cargo between Indian ports.
- Earlier action
- Orders issued in January and March had reversed the 2018 relaxations.
- Stated purpose
- To safeguard capacity for export-import trade and provide policy stability.
- Market effect
- Indian-flagged shipping companies will continue competing with foreign carriers.
- Duration
- The withdrawal of the January and March orders was stated to continue until September.
- Reported date
- August 30, 2026
Quotes
Jagannarayan Padmanabhan
Senior Director and Global Head-Consulting at Crisil Intelligence
“Since the geopolitical situation is grim, there should be availability of ships. Hence, the status quo of allowing foreign vessels in coastal trade needs to be maintained”
thehindubusinessline.com
“essentially maintains continuity and status quo”
thehindubusinessline.com
Sources
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