TBM Staff - Mumbai In a significant push towards strengthening India’s maritime economy, Finance Minister Nirmala Sitharaman announced key initiatives in the Union Budget aimed at revitalising the country’s shipbuilding and shipping sectors. The reforms are expected to unlock a market potential of INR 12 trillion, providing a substantial boost to employment and skill development.
Sitharaman proposed a simple tax scheme for foreign shipping companies operating domestic cruises to boost cruise tourism in the country during the Union budget presentation.
“To give a fillip to this employment generting industry, I am proposing a simpler tax regime for foreign shipping companies operating domestic cruises in the country,” Sitharaman said.
Sitharaman said ownership, leasing and flagging reforms will be implemented to increase the share of the Indian shipping industry and generate more employment.
“To give a fillip to this employment generating industry, I am proposing a simpler tax regime for foreign shipping companies operating domestic cruises in the country,” she said.
Key highlights of the announcement include the introduction of ownership, leasing, and flagging reforms designed to increase the Indian shipping industry’s market share. These measures are anticipated to generate more jobs and enhance the industry’s global competitiveness.
To further stimulate the domestic cruise industry, the government will implement a presumptive taxation regime for cruise ship operations of non-residents. Additionally, tax exemptions will be provided for income derived from lease rentals of cruise ships by foreign companies operating in India.
Union Minister for Ports, Shipping, and Waterways, Sarbananda Sonowal, praised the initiatives, noting their alignment with the Maritime Amrit Kaal Vision 2047. This long-term strategy aims to elevate India’s rank in global ship tonnage from 18th to the top five by 2047 and improve the country’s position in shipbuilding from 22nd to the top five. These advancements are expected to attract foreign investment into Indian shipyards and create numerous job opportunities in the manufacturing sector.
The comprehensive reforms announced in the budget reflect the government’s commitment to bolstering India’s maritime infrastructure and addressing the challenges posed by recent global geopolitical disruptions that exposed the nation’s reliance on foreign shipping.
