1-530-indian-vessels-reach-13-5m-gt-record-minister

In a move to strengthen domestic capabilities and reduce reliance on foreign entities in the shipping sector, India has seen a notable increase in its national tonnage.

 

As of Tuesday, Parliament was informed that there are now 1,530 vessels registered under the Indian flag, with a total gross tonnage (GT) of 13.7 million.

 

Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, reported that 1,041 of these vessels, totalling 1.7 million GT, are engaged in coastal trade as of June. Meanwhile, 485 Indian-flagged vessels, with a combined GT of 11.95 million, operate in international trade. Additionally, four vessels with a total GT of 45,604 have been acquired under Indian-controlled tonnage.

 

Minister Sonowal highlighted that the increase in Indian-flagged vessels signifies a growing preference for domestic over foreign-flagged ships. The government has implemented several initiatives aimed at making India self-reliant in the shipping sector.

 

Among these measures, the Financial Assistance Policy for Indian Shipyards, approved in 2015, provides financial aid to shipyards. In 2021, the government launched a subsidy scheme with a budget of Rs 1,624 crore over five years to promote the flagging of merchant ships in India.

 

 The Right of First Refusal (ROFR) scheme allows Indian-flagged vessels to match the lowest bid offered by foreign competitors, increasing demand for domestic vessels.

 

“These efforts have significantly contributed to the growth of the shipping sector and the Indian economy,” Sonowal said in the Rajya Sabha. “The increase in Indian tonnage over the past decade is a testament to the success of these initiatives.”

 

In addition, the volume of cargo transported via India’s inland waterways has surged from 18.07 million metric tonnes (MMT) in 2013-14 to 133.03 MMT in 2023-24. The number of operational National Waterways has risen from just three in 2013-14 to 26 by 2024, following the declaration of 106 new National Waterways in 2016.

 

The government aims to further enhance cargo traffic through inland waterways, setting targets of 200 MMT by 2030 and 500 MMT by 2047.