GIFT City strengthens India’s push into ship leasing

By Admin

16 Dec, 2025

Introduction
India’s ambition to become a global maritime and financial hub is gaining momentum through GIFT City. In just two years, ship leasing activity at the International Financial Services Centre (IFSC) in Gujarat has shown remarkable growth, positioning India as a credible alternative to traditional global leasing centres.

Rapid growth in ship leasing
Since ship leasing began at GIFT City, the numbers have grown steadily. As of October, 27 registered ship-leasing entities are operating from GIFT IFSC. In the past year alone, the number of vessels leased or purchased has more than doubled to 30, comprising 16 purchased ships and 14 leased vessels. This marks a major shift for India, which until recently lacked a dedicated platform for leasing ocean-going vessels.

The journey began in June 2023 when Ripley Shipping India IFSC Pvt Ltd became the first entity to lease a bulk carrier from GIFT IFSC. Since then, the centre has emerged as one of the few global financial hubs offering a regulator-monitored and comprehensive ship-leasing regime. The range of services includes financial leases, operating leases, hybrid structures, and sale-and-leaseback transactions.

Fleet composition and asset value
Bulk carriers dominate ship leasing activity at GIFT IFSC, accounting for 43 percent of the total vessels leased or purchased. According to data from the International Financial Services Centres Authority (IFSCA), the value of assets leased has reached $1.47 billion.

To date, 13 bulk carriers ranging from 75,500 DWT to 1,06,000 DWT have been leased or purchased. The single largest vessel leased from the IFSC is a 1,50,000 DWT Suezmax crude oil carrier on a 34- to 38-month lease, highlighting the scale of transactions being executed. Beyond bulk carriers, the leased fleet includes six ethane gas carriers, five container ships, three LPG tankers, one medium-range product tanker, and one additional tanker, reflecting growing diversification.

Shift of maritime finance to India
Of the 30 vessels leased or purchased through GIFT IFSC, 17 are Indian-flagged ships. The remaining vessels are registered under foreign flags such as the Marshall Islands, Panama, Portugal, and Singapore. For an industry that traditionally relied on offshore jurisdictions for leasing, this represents a strategic relocation of maritime finance to Indian oversight.

The importance of this shift goes beyond numbers. A ship’s flag determines its nationality, regulatory framework, and the legal jurisdictions under which it operates. By enabling leasing under Indian supervision, GIFT IFSC is strengthening India’s control over maritime assets while aligning with global standards.

Integrated leasing ecosystem at GIFT IFSC
While ship leasing at GIFT IFSC is still in a nascent stage compared to established hubs in Singapore and Europe, its integrated approach is drawing attention. Ship leasing activity is currently smaller than aircraft leasing at GIFT IFSC, where 37 entities have already leased around 253 aviation assets, including aircraft, engines, and auxiliary power units.

The ability to host both aviation and maritime leasing under a unified regulator is a key advantage. According to IFSCA Chairperson K Rajaraman, nine ship-leasing entities have already borrowed $71.1 million from financial institutions operating within GIFT City. The framework allows Indian-domiciled lessors to operate under globally aligned rules, reducing dependence on offshore centres and enabling competitive financing. Clear capital requirements and permission to transact in freely convertible foreign currencies further enhance GIFT IFSC’s appeal.

Challenges and the road ahead
Despite the progress, challenges remain. Experts point out that India’s closed ship registry can be less attractive compared to global hubs that offer lighter regulatory compliance. There is also demand for shipping to be notified as an infrastructure sub-sector to unlock financing benefits available to other capital-intensive industries. Delays in mortgage creation and enforcement have been flagged as another area needing reform.

Operational hurdles also persist. Industry leaders have highlighted the complexity of import procedures for Indian-flag ships under the SEZ Act, particularly the requirement to file bills of entry and shipping bills for every lease transaction. While this process may work for long-term aircraft leases, it poses difficulties for ship operators dealing with frequent short-term charters. Calls have also been made for clearer rules on ancillary services such as ship broking, ship management, commodity trading, and container leasing, along with dedicated ship finance desks at banks.

The regulatory framework for ship leasing, first issued in 2021 and later refined, continues to evolve. Recent relaxations, such as allowing IFSC-based ship lessors to share office space and personnel, signal a willingness to adapt. As policies are streamlined and operational challenges addressed, GIFT City is well placed to deepen India’s footprint in global ship leasing and maritime finance.