India to expand merchant fleet with 100 new vessels over five years

The Indian government has outlined plans to significantly expand the country's merchant marine capacity as part of a broader effort to enhance domestic shipping capabilities. The five-year expansion programme will focus on adding 100 vessels to the existing fleet through a combination of domestic shipbuilding and vessel acquisition strategies.

The initiative encompasses three key pillars designed to support industry growth. Reflagging provisions will facilitate the registration of foreign vessels under the Indian flag, while targeted shipbuilding support will encourage construction of new ships within Indian yards. Complementing these measures, fiscal reforms are being introduced to create a more competitive environment for domestic shipping operators.

The expansion programme reflects India's commitment to reducing dependence on foreign shipping services and building a globally competitive merchant fleet. By incentivising both vessel acquisition and domestic construction, the policy aims to create employment opportunities across shipyards and maritime sectors while strengthening India's position in global shipping trade.

The move aligns with broader infrastructure development goals and is expected to have positive ramifications for export-import logistics and maritime commerce throughout the region. Industry observers believe the combined approach of regulatory support and financial incentives will accelerate fleet modernisation and operational efficiency.