Mumbai: In a move bound to excite foreign shipowners, New Delhi has confirmed it is studying changing its cabotage laws, which date back to 1958.
It is currently mandatory that shippers select Indian ships for transporting cargo between the country’s ports. Foreign ships are allowed to operate only at times when Indian ships are not available.
While many local manufacturers will welcome greater competition in coastal trade, the nation’s shipowning association is expected to petition the government to keep the current status quo. Moreover, the shipowning body has recently called for 50% of all state-run companies’ cargoes to be shipped on Indian-flagged ships.