India relaxes cabotage rules for foreign ships

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Sea News reports on, and analyses, the recent Indian government decision to allow foreign-flagged vessels to carry cabotage cargo – domestic cargo from one Indian port to another. Cabotage restrictions had been blamed for limiting port volume development and had been vehemently protected by the country’s shipowners, who argued it would lead to foreign dominance of its shipping sector. In contrast, proponents of changes in the law argued that the India-flagged fleet was so small it could not cater for potential demand.