The CMA CGM Group recently announced the reflagging of one of its vessels to India in support of the Indian government's ambition to strengthen the country's role in global shipping. India, already home to many seafarers, aims to grow its maritime sector and expand its shipbuilding capabilities in the international market.

CMA CGM is among several major global shipping companies—alongside Maersk and MSC—that have shown interest in India. In February, CMA CGM welcomed Indian Prime Minister Narendra Modi at its headquarters and expressed intent to explore Indian vessel registration. The company is also eyeing India’s shipbuilding and repair sectors and has invested in terminals at Nhava Sheva Freeport and Mundra Port near Mumbai.

On April 28, the CMA CGM Vitoria officially joined the Indian registry while berthed at Nhava Sheva Freeport. The vessel, built in 2008 and acquired by CMA CGM in 2022, has a deadweight tonnage of 33,434 and a capacity of 2,592 TEUs. Formerly registered in Malta, it now operates under the Indian flag on routes between India, the Persian Gulf, and the Red Sea. Indian registration mandates Indian crew and classification by the Indian Register of Shipping.

According to The Economic Times, India imposes a tonnage tax rather than corporate tax on ships, though it is often viewed as less favorable for shipowners due to regulatory and financing challenges. Nevertheless, reports indicate that CMA CGM will soon reflag a second vessel, CMA CGM Manaus (built in 2009, 2,592 TEUs), from Malta to India. CMA CGM stated that three additional vessels are scheduled to reflag to India in the coming months.

The reflagging was facilitated by India’s Directorate General of Shipping. Officials noted that CMA CGM is “testing the waters,” with expectations of further vessels following suit.

CMA CGM emphasized that this move is part of its 34-year commitment to India. The company currently operates 19 weekly maritime services calling at Indian ports and has recently opened a crew management office in Mumbai. To streamline the reflagging process, it also established an Indian subsidiary.

Globally, nearly 75% of shipping capacity operates under so-called Flags of Convenience (FOC), allowing vessels to be registered in countries different from their ownership base. These include nations like the Marshall Islands, Cyprus, Panama, Liberia, and Malta, which charge annual fees based on Gross Registered Tonnage (GRT) and impose no taxes on owners.

Despite India’s comparatively less favorable tax and regulatory climate, Japan’s Mitsui O.S.K. Lines has registered ships in India through a local subsidiary and is now the country’s fourth-largest shipowner, with nine tankers and gas carriers operating under the Indian flag.

BW LPG India, a subsidiary of BW LPG Ltd—listed in Oslo and New York and the world’s largest owner of LPG vessels—owns nine Very Large Gas Carriers (VLGCs) flying the Indian flag, making it the top VLGC owner and operator under India’s registry.

Despite India’s ambitions, up to 99% of its import and export container trade is carried by foreign carriers such as MSC, CMA CGM, Maersk, Hapag-Lloyd, Evergreen, Wan Hai, and Yang Ming.

India’s only mainline container shipping operator, state-owned Shipping Corporation of India (SCI), currently owns three container vessels—SCI Delhi, SCI Mumbai, and SCI Chennai—along with a leased ship, Alexandria.

Indian exporters have long voiced concerns over the absence of a national container shipping carrier, leaving them heavily reliant on foreign lines.

To address this, the Indian government has instructed SCI and the Container Corporation of India (CONCOR)—both considered “national jewels”—to finalize the establishment of an Indian container shipping company to reduce dependency on foreign operators.