With rising tensions in the Middle East and a renewed focus on ship safety in the Strait of Hormuz, the flag flown by a ship has emerged as a key factor in maritime security, regulation and state protection.Flying a flag on a ship means that it is registered with a country and must comply with that country’s maritime laws and regulations. It also gives the flag state powers to investigate and punish violations of domestic and international laws. As regulations vary between countries, shipowners often choose jurisdictions that suit their operational and commercial needs, according to an ET report.
He watches
Strait of Hormuz open: What Iran’s move means for India amid ceasefire tensions
A vessel flying the Indian flag is a commercial vessel registered with the Directorate General of Shipping and licensed to fly the national flag.
These vessels are governed by the Merchant Shipping Act and operate under Indian jurisdiction as a sovereign extension on the high seas.These vessels are subject to taxation by the Indian authorities and must comply with Indian maritime safety, labor and environmental regulations. To qualify for Indian flag raising, ships must come to local waters for registration and the owning company must be registered in India.Indian flagged ships also receive strategic support. India protects its interests through naval and diplomatic intervention when needed.
Experts say this creates a higher compliance burden than “flag of convenience” jurisdictions such as Panama and St. Kitts.According to Rajeev Kumar Yadav, as quoted by ET, Director, Vertex Marine Services, Flag of Convenience systems allow ships to be flagged from anywhere in the world within “3-4 days”.Indian-flagged ships calling at domestic ports can also benefit from lower port charges and tax liabilities, along with priority in movement of government cargo and public sector charters.During the Iran crisis, more than two dozen Indian ships were stranded west of the Strait of Hormuz after strict designations of high-risk areas were imposed. The Indian Navy escorted several tankers to safety, although some ships remained in the Arabian Gulf.No direct attacks on Indian-flagged ships have been reported so far, largely due to India’s balanced diplomatic approach to the crisis.However, hoisting the Indian flag does not give the government powers to set shipping rates or trade destinations.
The state’s role is limited to enforcing civil, criminal and regulatory laws on board ships, as well as international safety, environmental and labor compliance standards.The Indian flagged fleet has expanded. The Indian-flagged vessel fleet reached 14.2 million gross tons (GT) in March, with 92 ships of 1.5 million GT joining during FY26.Amrit Kal Maritime’s long-term vision 2047 aims to sharply increase India’s share in the global flagged fleet and increase the use of Indian-flagged ships from about 7 per cent currently to 30-40 per cent by 2047.