Union Budget 2026 has several proposals to boost coastal shipping and kickstart inland shipping that has largely been a non-starter especially in cargo carrying. After COVID period during which the government realised the value of having Indian tonnage that it can leverage for national needs, the government has announced several proposals to rejuvenate indigenous shipping. A major push by the government is needed to overcome the current cost and time disadvantages of inland waterways, observers say. In a major tax relief, the presumptive tonnage tax scheme will apply to inland and coastal ship companies rather than the generic income-based tax. Tonnage tax is the global standard and is typically at 5% on a presumptive income for a given tonnage.

Source: The Hindu February 01, 2026 18:33 UTC