Budget 2024: Reforms flow to put wind in shipping industry's sails
reforms to improve the domestic shipping industry and generate more jobs in the sector.
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«Ownership, leasing and flagging reforms will be implemented to improve the share of the Indian shipping industry and generate more employment,» finance minister Nirmala Sitharaman said.
To support the sector, she proposed removing the customs duty on components and consumables for vessel manufacturing. Duties on technical documentation and spare parts for warship construction have also been scrapped.
«India's maritime sector across ship building, repairs and leasing will get a boost from this most exemplary initiative driven by Prime Minister Narendra Modi and spelled out in the budget,» union shipping, ports and waterways minister Sarbananda Sonowal told ET. «This will give a thrust to goals defined under the Maritime India Vision 2047,» he added.
In her budget speech, Sitharaman also highlighted the potential for cruise tourism in India. «To give a fillip to this employment generating industry, I am proposing a simpler tax regime for foreign shipping companies operating domestic cruises in the country,» she said.
The budget sought a presumptive taxation regime for cruise ship operations of overseas entities. It proposed to exempt from tax their income from renting ships to a related firm that operates cruise services in India. The budget makes a lot of provisions for the
