Indian government to contribute to tonnage increase
The following steps have been taken by the Government to support the shipping industry, which have contributed to an increase in the Indian Tonnage by 3.5 million gross tonnage (MGT) during the period from 2004 to 2011:
(i) With a view to provide a level playing field to the Indian shipping sector the Government introduced the tonnage tax system during 2004-05 which has effectively brought down the tax liability of shipping companies to a level comparable to the international levels from the previous levels of the corporate tax regime.
(ii) Indian Coasting Trade is reserved for Indian flag vessels through incorporation of cabotage regulations in the Merchant Shipping Act, 1958 under sections 406 and 407.
(iii) Indian Shipping industry has been provided cargo support in the form of right of first refusal & policy of Free On Board (FOB) import is being followed for government owned/controlled cargoes.
This information was given by Shri G.K. Vasan, Union Minister for Shipping.
Source: Government of India