The Union Cabinet of India approved the Bharat Maritime Insurance Pool on April 18, 2026, to cover national maritime trade [1].
The move aims to reduce India's dependence on foreign insurers and lower premiums during periods of global market volatility. By establishing a sovereign-backed mechanism, the government seeks to strengthen its control over shipping risk management, particularly amid tensions in the Gulf [2].
The pool is supported by a sovereign guarantee of ₹12,980 crore [1]. Depending on the exchange rate used by reporting agencies, this backing is valued between $1.4 billion [3] and $1.5 billion [4].
India currently operates just over 1,500 ships [5]. This fleet represents approximately 1.2 percent of the global shipping fleet [5]. The new insurance framework is designed to provide a safety net for these assets, and the broader trade infrastructure, as the country pursues greater self-reliance in its maritime sector.
Prime Minister Narendra Modi chaired the cabinet meeting that cleared the initiative [1]. The government said the pool will act as a shield for the shipping sector, ensuring that Indian trade remains resilient regardless of the availability or cost of international insurance cover [4].
“The pool is supported by a sovereign guarantee of ₹12,980 crore.”
This initiative marks a strategic shift toward financial sovereignty in the maritime domain. By decoupling its shipping insurance from global markets, India reduces its vulnerability to external geopolitical pressures and price hikes dictated by foreign firms. This aligns with a broader national strategy to increase the domestic share of the global shipping fleet and secure critical trade corridors.
