Centre proposes incentives for Indian shipping lines

The Government of India explores a proposal to extend tax and other incentives to draw large players to set up shipping lines in India and provide aid to the exporters grappling with global container shortage and exorbitant freight costs. Likely to be announced in the upcoming Budget for 2022-23, subject to the finance ministry’s concurrence, the different initiatives are currently undergoing deliberation from ministries of commerce and shipping. It is learned that some officials are studying the attractive Ireland model of taxation for shipping firms. On finalization of a proposal, the ministries will seek the approval of the finance ministry.
In the past year and a half, the Indian shipping industry in the wake of the pandemic has mirrored the global trend resulting in doubling the Shipping costs of Indian exporters to most destinations.
The state-run Shipping Corporation of India (SCI) that caters for less than 5% of the roughly USD100-billion domestic market, has barely been able to keep the cost curve in orderly evolution. In light of this, the government has now put the SCI on the block for sale.