INDIA Trends and Developments Contributed by: Gautam Bhatikar, Deeksha Dev Singh and Isha Patil, Phoenix Legal
Phoenix Legal Vaswani Mansion, Office No 17 & 18 3rd Floor, 120 Dinshaw Vachha Road Churchgate Mumbai – 400020 India Tel: +91 22 4340 8500 Email: mumbai@phoenixlegal.in Web: www.phoenixlegal.in
Introduction India’s vast coastline, spanning over 7,500 kilometres, positions its shipping industry as a key player in global trade. Supported by 12 major ports, this maritime network serves as a crucial lifeline for the Indian economy. In addi - tion to these major ports, over 200 non-major ports collectively handle approximately 95% of India’s trade volume. Within this framework, the Indian government launched the Maritime Amrit Kaal Vision 2017 in October 2023, as part of the broader Maritime India Vision 2030 initiative. This ambitious vision aims to usher India into an era of “port-led progress”. In this context, this article seeks to delve into the recent trends and developments shaping the Indian shipping industry. India’s Shipping Heritage India’s shipping industry has experienced a notable transformation, transitioning towards a charterer’s market rather than an owner’s market. This shift is reflected in the growing significance of ship leasing as an alternative for financing ship acquisitions. With the ship- leasing market expected to grow rapidly, India’s International Financial Services Authority (IFSA) has introduced a comprehensive Framework for
Ship Leasing. Drawing inspiration from global practices and the recommendations of the Ship Acquisition, Financing and Leasing (SAFAL) Report, this framework establishes ship leasing as a vital financial product to maintain India’s global maritime competitiveness. In alignment with international practices, India’s IFSA seeks to leverage the expanding ship-leas - ing market to strengthen the Gujarat Internation - al Finance Tec-City (GIFT IFC) and advance the vision of an “Atma-Nirbhar Bharat” (self-reliant India). Given Asia’s growing prominence as a hub for ship finance, India’s strategic advantag - es – such as its common law jurisdiction, strong infrastructure and proximity to key markets – position the nation well for substantial growth. Looking ahead, India aims to transition towards an owner-centric model by capitalising on its manufacturing and export growth. Initiatives such as the ship-leasing framework encourage lessors to act as owners rather than renters. By aligning with global trends and incentivis - ing investment, India is poised to enhance its shipping finance framework in the coming years, driving economic growth and creating employ - ment opportunities within the maritime sector.
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