Anchors Aweigh! RBI’s Bold Move Frees Up India’s Shipping Lanes

Unknown Apr 02, 2026 1,050 Views

As part of a sweeping set of reforms, the Reserve Bank of India (RBI) and government of India have brought significant relaxations and policy additions to shipping vessel and allied maritime equipment exports and imports. The new policy will ease trade, reduce compliance costs, and spur India'...

Key Points:

Lifting Import Restrictions on Boats: The government has relaxed restrictions on the import of some of the patrol boats, surveillance boats, air-cushion vessels, and remote-controlled vessels. They are now importable without any restrictions from immediately onwards as part of enhancing the maritime capability of India and improving coastal security. The boats, in general, are imported from France, Germany, Hong Kong, and the UK.

FEMA 2025 Regulations: RBI came out with revised draft regulations under the Foreign Exchange Management Act (FEMA) that merge and streamline current regulations for export and import transactions. The new draft focuses on ease of doing business, requires timely repatriation of export proceeds, and gives banks greater freedom to manage trade settlements and documentation. Public comments are invited prior to final implementation.

Support to Ship Building & Inland Waterways: Union Budget 2025-26 provided sustained support to indigenous ship building, ship recycling, and inland waterways. The exemptions on the minimum customs duty on inputs being used in ship building are extended by another ten years, and the tonnage tax regime is extended to include inland vessels, which makes the sector competitive and attracts investment.
Relief to Small Exporters: RBI has also provided relief to small-value shipping bills (up to USD 1,000) without the need for an Electronic Bank Realisation Certificate (eBRC) until September 30, 2025. It will reduce paperwork and fees for MSMEs and e-commerce exporters and help them enter foreign trade.
Special Lines of Credit for Ship Procurement: RBI guidelines now allow Indian-built offshore patrol vessels to be exported to Vietnam through a $180-million government-backed line of credit, funding Indian shipyards and projecting India's maritime presence abroad.

Impact:

These joint efforts are likely to:

- Accelerate fleet modernization and maritime trade.

- Reduce the exporters' and importers' compliance costs.

- Develop India as a world shipping and ship-building hub.

- Encourage MSMEs and potential exporters to enter foreign markets with fewer regulatory barriers.

Source: Economic Times, TaxGuru, India Sea Trade News, ShipGlobal, Lakshmikumaran & Sridharan, India Shipping News

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