India plans to add 100 new vessels to its merchant fleet over the next five years to reduce dependence on foreign shipping lines for carrying critical cargo such as crude oil, gas, coal and urea. The announcement was made on 25 August 2026 at the inaugural Sagar Samvad conference in New Delhi, which was organised by the National Shipping Board to discuss policy directions for Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.
Merchant Fleet and Flagging
India’s domestic merchant fleet currently has about 1,600 flagged vessels. A flagged vessel is a ship registered under a country’s flag and governed by its maritime laws, taxation rules and safety regulations.
Foreign Freight Bill and Cargo Dependence
India pays nearly $75 billion every year to foreign shipping lines for transporting import cargo and other critical freight. The cargo mix includes crude oil, liquefied gas, coal and fertiliser inputs such as urea, which are major items in India’s external trade and energy supply chain.
Competitiveness and Policy Roadmap
Maritime industry representatives stated that operating an Indian-flagged ship costs 16% to 20% more than operating a foreign-flagged ship. The cost gap is linked to taxes on ship imports, maintenance expenses, seafarers’ wages and higher domestic capital costs.
The National Shipping Board proposed a five-pillar roadmap with fiscal reforms, assured cargo support, competitive financing, regulatory streamlining and improved ease of doing business. The board also submitted its 2025–26 annual report and policy subcommittee recommendations to the Union Ministry of Ports, Shipping and Waterways.
Important Facts for Exams
- The National Shipping Board is a statutory body linked to maritime policy and shipping sector planning in India.
- Maritime India Vision 2030 is a national framework for port-led and shipping sector development.
- Maritime Amrit Kaal Vision 2047 is a long-term maritime roadmap linked to India’s centenary of independence.
- The ₹10,000 crore Container Manufacturing Assistance Scheme supports domestic container production in India.
Container Manufacturing and Reflagging
Maersk has begun ordering containers manufactured in India under the ₹10,000 crore Container Manufacturing Assistance Scheme. Hapag-Lloyd and NYK are among the global shipping lines that are in the pipeline to reflag vessels under the Indian flag.
