New Delhi –
The Research and Information System for Developing Countries (RIS) convened a closed-door discussion on “Tokenisation of Maritime Assets: A Case for Fractional Ship Owning”, focusing on innovative financing mechanisms to strengthen India’s ship-owning and shipbuilding capabilities and expand the country’s maritime capacity.
India’s growing integration with the global economy has created a significant opportunity and an urgent requirement to expand its maritime fleet. Since 2000, India’s share in global exports and imports has increased by more than twofold and threefold, respectively, even as its share in global registered shipping tonnage has declined. The widening gap accentuates the need to substantially augment India’s fleet to meet the transportation requirements of EXIM and coastal cargo, fleet replacement, and the transition towards greener shipping in line with evolving global standards.
The investment requirement for these priorities is estimated at nearly ₹15–16 lakh crore at present prices, making access to adequate and affordable capital a critical policy challenge for India’s maritime sector.
The discussion noted that conventional shipping finance remains complex, involving multiple intermediaries, stringent mortgage requirements and relatively high transaction costs. While government support and subsidies can provide an important impetus to the sector, they cannot constitute a sustainable long-term financing solution on their own. There is therefore a pressing need to explore innovative financing mechanisms capable of mobilising a wider pool of domestic and international capital.
Tokenisation as an Emerging Financing Avenue
The discussion paper presented tokenisation of real-world assets as a potential technology-enabled financing solution for the maritime sector. Tokenisation enables fractional ownership of physical assets by digitally representing ownership rights through distributed ledger technology, including blockchain.
Applied to maritime assets, the approach could potentially enable multiple investors to participate in ship ownership by holding fractional interests represented through digital tokens. This could broaden the investor base, lower entry barriers to ship ownership and create new avenues for mobilising capital for fleet expansion and renewal.
The discussion paper outlines a procedural framework for the tokenisation of ships, including the associated regulatory, legal, financial and compliance requirements. It seeks to establish a value proposition for key stakeholders—including shipowners, investors, financial institutions, regulators and other participants in the maritime ecosystem—while highlighting the safeguards required to ensure transparency, investor protection and regulatory compliance.
Need for a Coordinated Policy Framework
The discussion also emphasised that the adoption of ship tokenisation would require a clear and coordinated institutional and regulatory framework. Issues relating to ownership rights, asset registration, investor protection, taxation, digital securities, cybersecurity, compliance and cross-border transactions would need to be carefully addressed.
The discussion paper recommends the establishment of an Expert Committee or Task Force on Ship Tokenisation to examine the feasibility of the model, develop appropriate regulatory and operational frameworks, facilitate pilot initiatives, and coordinate among relevant stakeholders.
Such an institutional mechanism could help create a secure, trustworthy and transparent ecosystem for digital transactions involving maritime assets while supporting the broader objectives of enhancing India’s shipping tonnage, strengthening domestic shipbuilding and expanding ship-owning capacity.
The RIS discussion highlighted the need to view innovative maritime finance as an important component of India’s broader strategy for building a competitive, resilient and future-ready maritime economy. The tokenisation of maritime assets, subject to appropriate regulatory safeguards, could offer an additional financing avenue for mobilising capital and supporting the long-term expansion and modernisation of India’s maritime fleet.
The Research and Information System for Developing Countries (RIS) is a New Delhi-based autonomous policy research institute under the Ministry of External Affairs, specialising in international economic development, trade, investment, technology and development cooperation.
Marex Media