November 04, 2025: India’s shipping industry is set for a major transformation after the Finance Ministry granted infrastructure status to large ships, enabling fleet owners to raise funds through Infrastructure Investment Trusts (InvITs). The move is expected to unlock capital, spur new vessel acquisitions, and attract wider investor participation in the maritime sector.
According to the notification issued on September 19, Indian-owned and flagged commercial ships with a gross tonnage (GT) of 10,000 and above—or Indian-built, owned, and flagged vessels of 1,500 GT or more—will now qualify for infrastructure status. This change brings ships into the harmonised list of infrastructure sectors, a key step that allows them to leverage InvIT regulations for fundraising.
“This is a great opportunity to bring ships also under InvITs and monetise ships owned by various companies to invest in the next round of building ships or owning ships. Therefore, I see that the InvIT framework also offers an opportunity to raise finances for shipbuilding,” said K. Rajaraman, Chairman, International Financial Services Centres Authority (IFSCA).
“The single biggest challenge in the sector is raising long-term capital given the volatility in the markets and expectations of lower recovery,” Rajaraman said during the India Maritime Week held in Mumbai between October 27–31.
“With the infrastructure status, what will happen is, suppose someone has constructed/bought a ship investing large funds, it will take some time for the rent to start coming in. You can push that ship into an InvIT… that money can be recycled by the owners to build more ships, it’s just like a mutual fund,” explained Debashis Bandyopadhyay, Chief General Manager, SEBI.
“It’s a way of recycling capital, unlocking the capital fast, and this is an established regulation,” Bandyopadhyay added.
A Dubai-based ship broker noted that fractional ownership could now allow anyone to become a shipowner, depending on their investment appetite and risk profile.
