Freightwalla reaction to cabinet approving ₹1,624 crore subsidy scheme to Indian shipping companies
The Cabinet yesterday approved a scheme to provide ₹1,624 crore over five years as subsidy to Indian shipping companies in global tenders and for import of government cargo. The move was also highly applauded by Hon’ble PM Shri. Narendra Modi
In the context of the same, below is a quote from Mr. Shalin Shah, Vice President, Business Development at Freightwalla, on how the move will impact the overall trade and logistics ecosystem.
“The cabinet’s decision of approving a 5-year subsidy scheme worth ₹1,624 crores for Indian shipping companies in global tenders is an extremely encouraging move. Moreover, it has come in at an opportune time when the industry has been reeling under severe pressure due to high freight rates, acute container shortage, and the China factor, among others disrupting the overall supply chain. It is a step in the right direction. It will give Indian shipping companies an edge over their global counterparts and encourage many of them to carry government imports on Indian flagged vessels. Additionally, the government has been driving the agenda of increasing the number of Indian flagged vessels to enhance revenue from imports and exports while also bringing down the tax burden on the Indian companies. The new subsidy scheme floated by the government is an effective step in this regard. Now, we will witness the flagging of more vessels in India rather than foreign countries where they received subsidies and tax benefits.”