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A growing number of global shipping giants are reflagging their vessels under the Indian flag, marking a pivotal shift for India’s maritime industry. Thanks to encouraging government policies and a growing network of ports and facilities, India is stepping up as a major player in global shipping, media reports say.India is offering a mix of smart economic perks, strategic benefits and a clear vision to become a maritime heavyweight, according to media reports.The government is rolling out the red carpet with policies like giving Indian-flagged ships first dibs on government cargo and making it easier to do business in places like Gujarat International Finance Tec-City (GIFT City).On top of that, India is stepping up its game in shipbuilding and repair while pushing for eco-friendly shipping, which vibes perfectly with the global shift toward greener logistics.A.P. Moller - Maersk, the Danish shipping giant, has made a bold step by reflagging two of its container ships, Maersk Vilnius (1,810 TEU) and Maersk Vigo (1,740 TEU), under the Indian flag on October 13 and 21, respectively.These vessels, which used to sail under Singapore and Hong Kong registries, are now proudly operating under India’s rules, marking a new chapter for the company in the country.To facilitate this move, Maersk established Maersk Bharat IFSC Pvt Ltd in Gujarat International Finance Tec-City (GIFT City). Further details are expected to be revealed at India Maritime Week, starting October 27 in Mumbai.Earlier this year, Maersk celebrated a milestone by holding a naming ceremony for its dual-fuel methanol vessel, Albert Maersk, at Jawaharlal Nehru Port in February. It was the first such event by a global shipping company in India.This vessel, part of Maersk’s 11-strong methanol-capable fleet, underscores the company’s focus on sustainable shipping.The trend kicked off in April when French shipping leader CMA CGM reflagged its 2,592 TEU container vessel, CMA CGM Vitoria, under the Indian flag, previously registered in Malta. This move followed Prime Minister Narendra Modi’s visit to CMA CGM’s headquarters in France.Since then, the company has reflagged two more vessels, with a fourth expected by late October, as per media reports.Additionally, Rodolphe Saadé, Chairman and CEO of the CMA CGM Group, emphasised the company’s commitment to India, stating: “I am pleased that CMA CGM is the first international shipping company to order LNG vessels built in India. This milestone reflects the trust we place in India’s industrial and technological capabilities and supports Prime Minister Modi’s ambition to make India a global shipbuilding power. India is a strategic country for CMA CGM, where we invest, train and innovate. Beyond shipbuilding, we are strengthening our partnerships in logistics, maritime training and sustainable transport to support India’s growth and contribute to the decarbonistion of global trade” (PIB's Special Service and Features).Since then, the company has reflagged two additional vessels, with a fourth expected by late October, as per media reports.Mediterranean Shipping Company (MSC), the world’s largest container carrier based in Switzerland, is reportedly exploring the option of reflagging some of its vessels under the Indian flag.More details may surface during India Maritime Week. This move could help MSC adapt to potential regulatory shifts, such as the possible reversal of a 2018 policy allowing foreign-flagged ships to handle domestic container transport without licences.India’s shipping fleet currently includes around 1,600 vessels, with a total capacity of 14 million tonnes, making up just 2% of the world’s shipping capacity. Every year, the country shells out about $75 billion to lease foreign ships.By encouraging companies to reflag their vessels under the Indian flag, India is looking to cut down on this dependency and build a stronger, homegrown fleet.Reflagging ships under the Indian flag means more of the country’s cargo can be carried on its own vessels, keeping the profits at home. Plus, these ships act as a reliable backup when global supply chains hit a snag.This shift is also opening doors for Indian ship management firms, creating jobs for local seafarers and boosting port services.It’s a win for the economy and there’s an added perk: Indian-flagged ships get first dibs on transporting government cargo, which makes them even more attractive, according to media reports.Maersk is doubling down on its investment in India by teaming up with Cochin Shipyard Ltd for ship repair, maintenance and construction. They’re targeting vessels up to 7,000 TEU for afloat repairs and 4,000 TEU for dry docking.They’ve already picked out a ship for repairs, though limited capacity is a bit of a roadblock. Meanwhile, GIFT City is turning heads as a growing hub for global shipping and finance, drawing more international players to India’s maritime scene, as per media reports.
