India is negotiating maritime agreements with Liberia and Panama, key players among global open ship registries, amid ongoing threats to commercial vessels in the Strait of Hormuz. These agreements aim to decrease India’s reliance on foreign-flagged ships, which currently account for about 95% of its trade volume, exposing the country to risks from regional conflicts.
The proposed deals are part of a broader initiative to enhance India’s maritime capabilities, supported by a substantial package of ₹69,725 crores for domestic shipbuilding and related financing. Despite this effort, India’s share in global shipping capacity remains below 1%, making the ability of its maritime companies to scale up essential for the success of these agreements.
Additionally, the certification process for Indian vessels is expected to be streamlined through collaboration with Liberia and Panama. The agreements’ efficacy will also hinge on Indian shipyards meeting international quality standards.
The urgency of these initiatives has been underscored by a recent attack on October 6, when the Panama-flagged tanker MT On Peace was struck, injuring twelve crew members, primarily Indians. India’s Ministry of External Affairs condemned the violence and emphasized the need for protecting civilian maritime routes.
