India Grants Infrastructure Status to Large Ships Paving the Way for Shipping InvITs

The Ministry of Finance, through an e-gazette notification dated September 19, 2025 (Ref. No. F.No. 13/1/2025-IPP), has accorded infrastructure status to qualifying Indian-owned and Indian-flagged commercial vessels. This inclusion under the Transport and Logistics category of the Harmonised Master List of Infrastructure marks a pivotal shift in India’s maritime financing landscape, opening the door to long-term, lower-cost capital traditionally unavailable to the shipping sector.

Under this new classification, Indian-owned and flagged vessels of 10,000 GT and above, as well as Indian-built, owned, and flagged vessels of 1,500 GT or more, now qualify as infrastructure assets.

By granting vessels the same financing treatment as roads, ports, and energy assets, the reform enables shipowners to access infrastructure lending channels, improve their credit profiles, and raise capital through Infrastructure Investment Trusts (InvITs). Vessels may now be transferred into InvIT structures, with owners receiving units in the trust while the InvIT mobilises investor funds, potentially up to 80% of the vessel’s value, thereby releasing significant liquidity for fleet expansion, newbuild orders, and modernisation.

The reform also sets the stage for India’s first shipping-focused InvITs, enabling institutional, retail, pension, and insurance investors to participate in revenue-generating maritime assets through fractional ownership. Introduced at a time of growing coastal cargo movement, shifting global supply chains, and rising demand for modern vessels, this policy strengthens India’s maritime competitiveness, advances the goals of the Maritime India Vision 2030, and provides a significant impetus to the domestic shipbuilding sector.

Importantly, infrastructure status reshapes the financing philosophy for India’s shipping industry. Ownership is no longer limited to capital-intensive corporations; InvITs and structured investment models allow participation across varied ticket sizes, mirroring the accessibility of mutual funds or listed securities. The shift from traditional balance-sheet or government-supported financing to market-driven, asset-backed monetisation structures is expected to have far-reaching implications for India’s shipbuilding competitiveness, vessel leasing ecosystem, and long-term maritime growth trajectory.