The cabotage rule under section 406 of the of the Merchant Shipping Act 1958 has relaxed the licencing requirement for ships chartered by Indian entities to allow coastal movement of agricultural, horticultural, fisheries, animal produce commodities and fertilizers. The purpose of these relaxations is to enable farmers to access a larger market profitably and promote trade and ease of doing business in India.
The cabotage rule under section 407 of the of the Merchant Shipping Act 1958 has relaxed the licencing requirements of foreign flag ships for (i) transportation of EXIM laden containers for transhipment purposes in India, or (ii) transportation of empty containers. The purpose of these relaxations is to arrest the increasing share of Indian container cargo transhipped at foreign ports.