In this blog, Katrina Ross, Policy Director, Commercial and Governance at the UK Chamber, explores the implications of the FTA’s maritime provisions and what they mean for maritime stakeholders in both countries.

Key provisions include India’s commitments reflect a protective stance toward its domestic maritime industry, with several notable restrictions:

• Cabotage and Offshore Transport: As expected, cabotage (domestic coastal shipping) remains off-limits to foreign operators. Offshore transport is also excluded.
• Market Access and National Treatment: There are substantive limitations on foreign access to liner and bulk shipping markets. Indian-registered vessels retain a right of first refusal, particularly for bulk cargo—except for LNG, where no decision has been made.
• Port and Operational Services: On a more positive note, non-discriminatory access has been agreed for essential port services such as pilotage, towage, anchoring, and port reception facilities. This could improve operational efficiency for UK shipping companies operating in Indian ports.
• Passenger Shipping: There is greater openness in cross-border passenger shipping, suggesting potential for growth in cruise and ferry services.
• Ancillary Services: Services like marketing and ship management remain “unbound”, meaning India has not committed to any specific liberalisation in these areas.

Maritime Auxiliary Services: A Mixed Bag

For auxiliary services — such as cargo handling, warehousing, customs clearance, agency services, and ship brokering — India has offered fewer restrictions, though foreign providers must establish a local presence. This requirement could pose a barrier for smaller UK firms but also signals opportunities for joint ventures and local partnerships.

However, international chartering of foreign-flagged bareboat vessels remains tightly controlled. Permission from the Indian government is required, and only in the absence of suitable Indian-registered vessels.

Implications for the Maritime Industry

For UK maritime businesses, the FTA highlights that opportunities may exist in port services and auxiliary logistics, especially for firms willing to invest in India. However, challenges remain in accessing core shipping markets due to India’s protective measures, meaning that strategic partnerships with Indian firms may be the most viable route to market entry.

For Indian maritime stakeholders, the agreement preserves key protections for domestic shipping, especially in bulk and liner segments. The FTA could encourage technology transfer and best practices through foreign collaboration, alongside the potential for increased competition in port services being a driver for greater efficiency and modernisation.

A novel approach

Overall, the maritime services elements of the UK-India FTA’s trade in services chapter sets out a novel approach. It liberalising selectively, whilst continuing to preserve some of India's protectionist shipping measures, against the spirit of the 1987 OECD Common Principles of Shipping. However, for the wider UK maritime services cluster, this sets the tone to develop maritime ties with a fast-growing economy.

For now, the FTA sets the course for a more structured relationship between the UK and India. It remains to be seen how these commitments translate into on-the-ground changes—in port operations, shipping routes, and business partnerships.