March 16, 2025 | By Anita Jain Shah

Global cruise giant MSC Cruises is considering expanding its footprint in India, contingent on favourable regulatory and tax conditions. The move aligns with India’s growing focus on cruise tourism, as the government introduces incentives to attract international cruise lines.

Norbert Stiekema, Executive Director of Global Sales at MSC Cruises, acknowledged India’s potential while noting existing challenges. “We have always been present in India, but it’s a very small market for us. Our key markets are Europe, the US, and South America,” he stated. He added that MSC Cruises would evaluate deployment options if regulatory and tax structures become more conducive.

India’s Cruise Tourism Push
The Indian government has been actively working to position the country as a prominent cruise destination. A significant step in this direction is the waiver of Integrated Goods and Services Tax (IGST) for foreign-flagged vessels undertaking coastal runs, provided they revert to foreign-going status within six months. This move is expected to encourage luxury cruise operators to deploy ships in Indian waters.

Nalini Gupta, Managing Director of Lotus Destinations, which represents Costa Cruises in India, highlighted the impact of the policy. “The IGST waiver has made it viable for cruise companies to bring luxury vessels to India, making operations more financially sustainable,” she explained.

In addition to tax reforms, the government is developing cruise infrastructure at key ports such as Mumbai, Goa, Kochi, Chennai, and New Mangalore. These efforts aim to create world-class facilities to enhance passenger experiences and encourage international cruise operators to consider India as a homeport.

Market Potential and Economic Impact
According to government projections, India’s cruise passenger numbers are expected to grow from 0.3 million in 2023 to 4 million by 2041. The sector’s economic contribution is also projected to rise from ₹712 crore to ₹35,500 crore over the same period.

However, challenges remain. Cruise operators and investors have often cited India’s complex tax structures and bureaucratic hurdles as major obstacles. Business groups have long called for streamlined regulations to make cruise operations smoother and more predictable.

Government’s Maritime Initiatives
To further boost the shipping and cruise industry, India recently announced the creation of a ₹250-billion ($3 billion) maritime development fund. The fund will provide long-term financing to support shipbuilding and repairs, with contributions from the government, ports, and private stakeholders.

The government is also working on easing visa regulations to facilitate cruise tourism. Measures such as e-visa extensions, visa-on-arrival options, and a single e-landing card valid across multiple ports are being introduced to streamline the entry process for international passengers.

The Road Ahead
With global cruise players like MSC Cruises showing interest, India’s cruise tourism sector appears poised for significant growth. The combination of regulatory support, infrastructure development, and economic potential could position India as a major cruise hub in the coming years. However, sustained policy improvements and seamless execution of reforms will be key to attracting long-term investments from international cruise liners.

As MSC Cruises continues to evaluate India’s market, industry stakeholders remain hopeful that the country’s evolving regulatory landscape will encourage major players to deploy ships and tap into India’s untapped cruise potential.