Coastal Shipping Act: GIFT IFSC Exempt from s.11 Licence

Coastal Shipping Act licensing exemption for GIFT IFSC units

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Battle Brief

The Ministry of Ports, Shipping and Waterways has exempted IFSC units in GIFT City, Gandhinagar, from the licensing requirement under Section 11 of the Coastal Shipping Act, 2025. Eligible units need not take a Director General of Shipping licence to charter foreign vessels for EXIM and international trade. Cabotage and coastal-trade safeguards stay unchanged.

Fact File

Notified: PIB 10 Jul 2026, Ministry of Ports, Shipping and Waterways
Law: Coastal Shipping Act, 2025, Section 11
Who is exempt: units in the IFSC at GIFT City, Gandhinagar
What is waived: DG Shipping licence for chartering foreign vessels for EXIM/international trade
Cabotage: prevailing coastal regime unchanged
IFSC definition: IFSCA Act, 2019, s.3(1)(g)

In the news

The Coastal Shipping Act IFSC exemption: what happened?

India wants ship leasing and maritime finance to grow from GIFT City. Chartering a foreign ship for overseas trade earlier needed a DG Shipping licence under Section 11. Removing that licence step for IFSC units is meant to cut friction for leasing and financing structures sitting in the IFSC.

Exemption covers IFSC units chartering foreign vessels for EXIM and international trade operations under Section 11.
Eligible units no longer need a licence from the Director General of Shipping for those operations.
Coastal trade rules and cabotage safeguards are not altered.
Notification has immediate effect.
IFSC takes its meaning from the International Financial Services Centres Authority Act, 2019.

Back Story

What is the policy aim?

Build GIFT City as a maritime leasing and financing hub.
Attract ship-owning, leasing, financing and asset-management activity.
Keep domestic coastal shipping protections in place while easing EXIM chartering for IFSC entities.

Back Story

What stays unchanged?

The exemption is limited to the Section 11 licensing requirement.
The existing framework governing coastal trade is not altered.
Cabotage and coastal-shipping safeguards continue to apply.
The notice takes effect immediately on notification.

Rulebook

Which Acts are cited?

Coastal Shipping Act, 2025 — Section 11 licensing requirement waived for eligible IFSC units for EXIM/international chartering.
International Financial Services Centres Authority Act, 2019 — Section 3(1)(g) defines International Financial Services Centre.

Why examiners care

Why does the Coastal Shipping Act IFSC exemption matter?

Angle	What to note
Maritime finance	Lowers a licensing barrier for IFSC-based ship leasing and chartering.
Ease of doing business	Removes a DG Shipping licence step for covered EXIM operations.
Cabotage intact	Coastal trade safeguards remain; this is not a coastal-trade liberalisation.

Fault Lines

What are the challenges in the Coastal Shipping Act IFSC exemption?

The release does not quantify expected investment or vessel counts.
Benefits depend on actual leasing and financing deals closing in GIFT City.
Only Section 11 licensing is eased; other shipping and tax rules still apply.
Cabotage unchanged means this is not a coastal-trade liberalisation.

Road Ahead

What should be done next on the Coastal Shipping Act IFSC exemption?

Monitor IFSC ship-leasing registrations after the notice.
Keep coastal compliance distinct from EXIM chartering pathways.
Align with broader GIFT City maritime-services positioning.

Exam Radar

What can Prelims ask on the Coastal Shipping Act IFSC exemption?

IFSC GIFT City units exempt from Coastal Shipping Act 2025 s.11 licence for foreign-vessel EXIM chartering.
DG Shipping licence waived for covered operations; cabotage unchanged.
IFSC defined under IFSCA Act 2019 s.3(1)(g).
Ministry of Ports, Shipping and Waterways; immediate effect (PIB 10 Jul 2026).

Answer Lab

How to write about the Coastal Shipping Act IFSC exemption in Mains

Practice question (10 marks, 150 words): How can IFSC-based regulatory tweaks support India’s maritime services ambitions without weakening coastal safeguards?

Intro: s.11 exemption for GIFT IFSC units.
Problem: licence friction for EXIM chartering.
Design: waive licence; keep cabotage.
Limits: no investment numbers yet.
Conclusion: finance hub with coastal firewall.

How to use this in Mains

GS-III Infrastructure: energy, ports, roads, airports, railways; investment models

As per PIB (2026-07-10): IFSC units in GIFT City are exempted from licensing under Section 11 of the Coastal Shipping Act, 2025 for chartering foreign vessels for EXIM trade.
GIFT City is being built as a maritime finance hub.

Quotable data point
IFSC units in GIFT City are exempted from licensing under Section 11 of the Coastal Shipping Act, 2025 for chartering foreign vessels for EXIM trade.
PIB: Shipping: IFSC exemption, 10 Jul 2026

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

The July 2026 Coastal Shipping Act notification for GIFT IFSC units waives licensing under

Answer (b) & explanation

PIB (Ports), 10 Jul 2026.

Practice · UPSC

After the IFSC exemption, coastal cabotage rules

Answer (b) & explanation

PIB (Ports), 10 Jul 2026.

Quick questions

Questions students ask about this

What licence is no longer needed for IFSC units under this notification?

A Director General of Shipping licence under Section 11 of the Coastal Shipping Act, 2025 for chartering foreign vessels for EXIM and international trade.

Does the exemption change coastal cabotage rules?

No. The release states the prevailing cabotage regime and coastal safeguards remain unchanged.

Where must the unit be established?

In the International Financial Services Centre at GIFT City, Gandhinagar.

Which law defines an IFSC here?

The International Financial Services Centres Authority Act, 2019, Section 3(1)(g).