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India unfortunately lags behind in all the areas of shipping — ownership, shipbuilding, and flagging.
India owns just 1,526 ships, with a total gross tonnage capacity of around 13 million.
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India is at the 18th position with 1.2% of the global shipping capacity.
Further, only 0.77% of the world’s ships are registered under the Indian flag.
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China dominates theindustrywith 46.6% of shipbuilding measured by gross tonnage, followed by South Korea at 29.2%, and Japan at 17.2%.Not only does the lack of ships annually cost India $90 billion in shipping related payments, but it is also a big security risk.
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It seeks to create a comprehensive regulatory framework for coastal trade, an area that has so far lacked cohesive legislation.
Currently, mechanised vessels involved in coastal shipping are partly governed by Part XIV of the Merchant Shipping Act, 1958.
How to invest in renewable energy stocks India ✌️【Job Vacancy】✌️Invest ₹500 and earn up to 100% monthly returns with our safe and reliable platform!The non-mechanised vessels fall under the Coasting Vessels Act, 1838.
How to invest in renewable energy stocks India ✌️【Job Vacancy】✌️Smart investing starts at ₹500. Grow your wealth through high-yield options!These address only their registration and do not provide a broader regulatory framework.To promote coastal shipping, the new legislation removes the requirement for Indian-flagged vessels to obtain a general trading licence for engaging in coastal trade.
It also empowers the Director-General to issue licences to foreign-flagged vessels, considering factors such as the crew’s nationality, the vessel’s construction specifications, and other relevant criteria.
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