Cabotage Laws Limit Coastal Shipping Competition in India Despite Calls for Reform
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Cabotage laws restrict foreign ships from carrying coastal cargo in India, preserving the market for a small domestic shipping industry.
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Successive Indian governments have considered relaxing cabotage laws to make coastal shipping more competitive, but no reforms have been implemented.
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Removal of cabotage could allow foreign ships to carry cargo along India's coasts, improving logistics efficiency.
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The Indian shipping industry argues cabotage protects local players, but has not added much capacity despite this protection.
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Questions remain on why cabotage reform has been mysteriously blocked for decades, with some blaming bureaucratic resistance.