The Ministry of Ports, Shipping and Waterways has restored 2018 relaxations allowing foreign-flagged vessels to transport specified cargo between Indian ports. The order aims to maintain shipping capacity and operational certainty amid global supply chain disruptions, keeping Indian vessels in continued competition with foreign carriers.

NEW DELHI — India’s shipping sector will continue to see foreign-flagged vessels operating in coastal trade, following an order by the Shipping Ministry issued on August 10. The directive restores the relaxations originally introduced in 2018, which permit foreign carriers to transport specified categories of cargo between Indian ports.

The latest decision effectively rescinds two orders issued earlier this year in January and March, which had initially sought to reverse the 2018 policy and phase out foreign shipping lines from the domestic cabotage regime. According to the Ministry, the withdrawal of those earlier orders—extended through September—was designed to provide policy stability and operational certainty to India's maritime trade and logistics sector during a period marked by ongoing geopolitical developments and global shipping disruptions.

By maintaining the status quo, the government seeks to ensure that adequate shipping capacity remains available for exporters and importers navigating international supply chain constraints. However, the policy continuation means that domestic Indian-flagged shipping companies will not receive exclusive access to eligible coastal cargo and must continue facing competition from foreign carriers.

Industry experts have offered mixed reactions to the move. Jagannarayan Padmanabhan, Senior Director and Global Head-Consulting at Crisil Intelligence, noted that the decision maintains status quo for shippers and shipping companies, preventing another regulatory transition. At the same time, he pointed out that Indian-flagged operators will continue to compete alongside foreign carriers for eligible coastal cargo.

Maritime trade expert Rajesh Menon supported the arrangement, stating it remains necessary to guarantee adequate vessel availability for India’s export-import trade amid grim global geopolitical conditions. Conversely, a former department official questioned the policy reversal, noting that restoring orders previously deemed ineffective after a government review raises questions about long-term regulatory planning, despite the stated goal of ensuring operational certainty.

"The Ministry's decision to maintain status quo on foreign vessel relaxations highlights the delicate balance policymakers must strike between protecting domestic shipping lines and ensuring uninterrupted capacity for import-export trade during global uncertainties. While Indian-flagged operators will face continued competition, operational stability remains crucial for logistics and supply chain continuity in the near term." — Dr. Shishir Gupta, Founder & CEO, StartupLanes

Recent StartupLanes Articles

Browse through our 30 latest publications on venture capital, startups, and angel investing.

SpaceX Successfully Launches NASA's $4.3 Billion Nancy Grace Roman Space Telescope Sep 19, 2026
Telangana Agriculture Commission Proposes Dedicated Minor Irrigation Act and Tank Protection Measures Sep 19, 2026
Second Phase of Zehanpora Archaeological Excavation Begins in North Kashmir Sep 19, 2026
Vice President C P Radhakrishnan to Launch Strategic Ornamental Fisheries Plan in Lakshadweep Sep 19, 2026
Government Expands Digital Fertilizer Tracking System to Link Purchases with Land Records Sep 19, 2026
Bengaluru Commercial Real Estate Faces Approval Delays and Squeezed New Supply Sep 19, 2026
Andhra Pradesh CM N. Chandrababu Naidu to Inaugurate Phase-I of Veligonda Irrigation Project on August 31 Sep 19, 2026
How Age and Taxation Shape Investor Preferences for Capital Appreciation Versus Dividend Income Sep 19, 2026
Evaluating Equity Index Funds: A Comparative Look at Nifty 50, Nifty Next 50, and Nifty 500 Sep 19, 2026
Analyzing the Case for a 10% Gold Allocation in Investment Portfolios Sep 19, 2026
Shipping Ministry Retains 2018 Relaxations for Foreign Ships in Coastal Trade Sep 19, 2026
Bullion Prices Decline as Markets Brace for US Jobs Data and Geopolitical Tensions Sep 19, 2026
Gas-Based Power Plants Play Key Role in Stabilizing India's Grid Amid Peak Heatwave Demand Sep 19, 2026
HNGIL Serves IBC Default Notice to Bira 91 Maker B9 Beverages Over ₹11.77 Crore Dues Sep 19, 2026
India and Uzbekistan Elevate Bilateral Ties to Comprehensive Strategic Partnership Sep 19, 2026
India's FY27 GDP Growth Projected at 7-7.2% Amid Strong Domestic Demand and Capex: EY Report Sep 19, 2026
Rupee Faces Structural Depreciation Pressure Despite RBI Intervention, Says Systematix Report Sep 19, 2026
Indian Bank Plans 100 New Branches and 2,500 Hires in FY27, Targets Lower NPAs Sep 19, 2026
Smartworks Outlines ₹600 Crore Capital Expenditure Plan for FY27 to Support Managed Workspace Growth Sep 19, 2026
PM Modi Highlights Economic Support Schemes and Youth Campaigns in 137th 'Mann Ki Baat' Sep 19, 2026
Tata Passenger Electric Mobility Reports Threefold Increase in EV Bookings Amid Production Constraints Sep 19, 2026
Former SEBI Chairman UK Sinha Says Market Regulator Needed Better Preparation for Closing Auction Mechanism Sep 19, 2026
Nepal Flash Floods Trigger Infrastructure Damage and Ongoing Rescue Operations Along Bhotekoshi River Sep 19, 2026
India Works to Secure BRICS Consensus Amid Iran-UAE Tensions Ahead of September Summit Sep 19, 2026
HDFC Bank Considers Internal and External Candidates for CEO Succession Sep 19, 2026
India Meets Fiscal Deficit Target of 4.4% for 2025-26, Says Finance Minister Sitharaman Sep 19, 2026
Pidilite Industries Reports Steady Q2 Demand, Rules Out Immediate Price Hikes Sep 19, 2026
PM Modi Urges Citizens to Prioritize 'Made in India' Products Ahead of Festive Season Sep 19, 2026
Indian Economy Projected to Grow Between 7-8% in April-June Quarter, Research Reports Indicate Sep 19, 2026
TVS Motor Dealer Training Program Led by Catalyst Reports Sales Lift Sep 19, 2026