India is planning to add 100 more Indian-flagged vessels over the next five years to reduce its dependence on foreign shipping lines and lower its foreign freight bill. The union minister of ports, shipping and waterways announced the target at a National Shipping Board event held on August 25, 2026.
Currently, India has around 1,600 domestically flagged vessels and spends nearly $75 billion annually on freight services, including the transport of crude oil, gas, coal and urea. However, operating Indian-flagged ships is estimated to be 16–20 per cent more expensive than using foreign-flagged vessels, largely because of taxes, higher capital costs and other domestic expenses. To address these challenges, the National Shipping Board has proposed reforms covering fiscal policy, assured cargo, competitive financing, regulatory simplification and ease of doing business.