Can India be a shipowners’ market?
- Gautam Bhatikar , Shruti Salian and Devshree Patil - 20-09-2022
Over the past decade, ship leasing has grown to become a significant substitute as a provision for financing of ship acquisition. The ship leasing market is projected to further grow at a rather significant pace in the near future, with the expansion of the Chinese leasing companies.1 India's International Financial Services Authority (Hereinafter referred to as "IFSA") , in line with the global trends in the ship leasing market recently released Framework for Ship Leasing.2 The idea culminated by virtue of the Ship Acquisition, Financing and Leasing (Hereinafter referred to as "SAFAL") Report which redefined a ship lease as a financial product, to sustain in the global maritime play. The current framework acts as an enabling channel to achieve SAFAL's initial object.3 Considering the increase in several entities setting up their operations in the Indian IFSC, after the IFSC Authority came out with the framework enabling aircraft leasing and ancillary services, one can naturally predict a positive outcome from the Ship leasing framework as well.4
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