January 2016 Issue – Foreign ship owners decide to fly the Indian flag

Law & Freedom: the end of Law is not to abolish or restrain, but to preserve and enlarge freedom. For in all the states of created beings capable of Law, where there is no Law, there is no freedom. – John Locke

There’s no end to Education. It is not that you read a book, pass an examination, and finish with education. The whole of life, from the moment you are born to the moment you die, is a process of learning. – J. Krishnamurti

Point of view: We can look upon a road, from two different points of view. One regards it as dividing us from the object of our desire; the other sees it as the road which leads us to our destination; and as such it is part of our goal. – Rabindranath Tagore

The great gift of human beings is that we have the power of empathy; we can all sense a mysterious connection to each other. – Meryl Streep

Registering under the Indian flag allows foreign vessels carry cargo and containers on local routes, in accordance with the country’s cabotage laws.

The initiatives taken by the Narendra Modi government to promote India’s coastal shipping sector has started yielding results with some foreign ship owners seeing benefits of registering ships under the Indian flag to carry cargo on local routes.

In shipping, a ship flies the flag of the country where it is registered and is subjected to the tax jurisdiction of that nation. Only Indian registered ships are allowed to carry cargo on local routes, according to a so-called cabotage rule.

Rules on registering ships in India have often faced criticism even by the local fleet owners because of multiple taxes hurting their operational competitiveness. But foreign ship owners have already converted, or are in the process of converting, some of their ships to fly the Indian flag.