A growing number of international shipping companies are reflagging vessels under the Indian flag, signaling a strategic shift in global maritime operations, reports Mumbai's reported Republic Business.

India's mix of economic incentives, regulatory reforms and infrastructure expansion is attracting major players to its ports..

The Indian government is offering Indian-flagged ships priority access to government cargo and simplifying business operations in Gujarat International Finance Tec-City (GIFT City). These measures are part of a broader push to position India as a global maritime centre.

India is also investing in shipbuilding and repair, with a focus on eco-friendly logistics. This aligns with global trends toward sustainable shipping and supports the country's ambition to reduce reliance on foreign vessels.

Danish shipping giant Maersk reflagged two containerships, the 1,810-TEU Maersk Vilnius and the 1,740-TEU Maersk Vigo, under the Indian flag in October. The company also established Maersk Bharat IFSC Pvt Ltd in GIFT City and held a naming ceremony for its dual-fuel methanol vessel Albert Maersk at Jawaharlal Nehru Port earlier this year.

French operator CMA CGM began the trend in April by reflagging its 2,592-TEU CMA CGM Vitoria, previously registered in Malta. The company has since reflagged two more vessels and plans a fourth. Chairman Rodolphe Saade said the firm is investing in LNG vessels built in India and expanding partnerships in logistics and training.

Mediterranean Shipping Company (MSC), the world's largest container carrier, is reportedly considering reflagging some of its fleet to India. The move may help MSC navigate potential regulatory changes affecting foreign-flagged ships in domestic trade.

India's fleet comprises around 1,600 vessels with a combined capacity of 14 million tonnes, representing just two per cent of global shipping. The country spends about $75 billion annually to lease foreign ships. Reflagging aims to reduce this dependency and strengthen domestic capabilities.

Indian-flagged vessels offer economic advantages, including job creation for local seafarers and increased business for ship management firms. They also provide strategic backup during global supply chain disruptions.

Maersk is expanding its footprint in India through a partnership with Cochin Shipyard Ltd for ship repair and construction. The company is targeting vessels up to 7,000 TEU for afloat repairs and 4,000 TEU for dry docking, though capacity constraints remain a challenge.

GIFT City is emerging as a key hub for global shipping and finance, drawing increased interest from international maritime firms, reported Republic Business.