India’s ambitious plan to launch a new state-owned shipping company is major news for the secondhand and newbuilding markets, Greece’s Xclusiv Shipbrokers believes.

The government is reported to be aiming to boost the Indian-controlled fleet by more than 1,000 cargo vessels over 10 years.

The idea is to compete in the growing global trade market and reduce reliance on overseas tonnage, the Athens shop said.

The new company will collaborate with state-run oil, gas and fertiliser industries to secure business and leverage expertise from existing owners such as Shipping Corp of India (SCI), Reuters has reported.

“If and when these plans start to come to fruition it will significantly affect the sale-and-purchase and newbuilding market,” Xclusiv added.

The government hopes to cut freight costs by one-third by 2047, with estimates suggesting a potential rise to $400bn if India relies solely on foreign carriers, the broker said.

“This initiative reflects India’s ambition to become a world-class manufacturer and a developed nation by 2047,” it added.

The new company, which has yet to be named, will be jointly owned by state-run commodities companies and SCI, plus overseas investors, Reuters cited sources as saying.

Indian interests control a fleet of about 1,500 large cargo vessels at the moment, including tankers, gas carriers, bulkers and container ships.

SCI will be asked to provide guidance on “tanker acquisition and ownership, operations and other areas of shipping”, a source told Reuters.

The two ministries are said to have formed a working group to draw up a road map for the scheme.

The new shipowner will be based at GIFT IFSC, a financial centre in Gujarat.

The operation will draw on seed capital from a maritime development fund worth about INR 300bn ($3.6bn) that is due to be established with port authorities.

The government will encourage state-run companies to sign 15-year charters for newbuildings, so that shipowners can secure cheaper financing.

India is in the process of selling its 63.75% holding in SCI. It is not clear how the new proposal might affect this plan.