The government plans to set up a new shipping company to expand its fleet by at least 1,000 ships in the next decade, to gain revenue from trade. The yet-to-be-named firm will be jointly owned by state-run companies in the oil, gas and fertiliser industries.

The new firm will be based at GIFT IFSC, in Gujarat which aims to compete with hubs such as Singapore, based on privision of incentives and a streamlined regulatory environment. It would draw seed capital from a maritime development fund of roughly Rs 30,000 crore (USD 3.6 billion) the government plans to set up in a tie-up with major port authorities.

In January, India's oil and shipping ministries agreed that all state-run oil companies and the planned company will work together. In May, the two ministries formed a joint working group of government and industry officials to devise a roadmap, and draw on the expertise of the Shipping Corporation of India in tanker acquisition and ownership, operations and other key areas. 

India has a fleet of about 1,500 large vessels including tankers, gas carriers, container ships and dry bulk carriers. The aim is to reduce freight outgoings to foreign firms by at least a third by 2047.