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In a first, India has enacted a sweeping overhaul of its maritime sector, replacing all pre-Independence era laws with a modernised framework that seeks to make the country a global maritime hub.
The just concluded Monsoon Session of the Parliament cleared five key legislations, namely, the Merchant Shipping Bill; the Indian Ports Bill; the Coastal Shipping Act (after receiving Presidential assent); the Carriage of Goods by Sea Act (after Presidential assent), and the Bills of Lading Act (after Presidential assent).
Together, they aim to ease business processes, align India with international conventions, and accelerate investments in ports, shipbuilding, and shipping services.
“This has been a landmark session with these new legislations set to transform India’s maritime sector, and bring in a wave of new investments,” said Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal.
Atmanirbhar Seas
The centrepiece of the reforms – the Merchant Shipping Act, 2025 – provides a robust legal framework to realise India’s Maritime Amrit Kaal Vision 2047. It replaces colonial-era provisions and updates India’s maritime regulation in line with International Maritime Organization (IMO) conventions and global best practices.
The law aims to increase tonnage under the Indian flag; reduce dependence on foreign vessels, and boost India’s image as a reliable shipping jurisdiction.
Expanded ownership categories will enable registration of chartered vessels in India – a segment it intends to tap, while quality training and skill development of seafarers will create new employment opportunities.
It mandates a stronger salvage ecosystem, safety standards in navigation, and preventive measures for marine pollution. Stringent environment protection laws covering oil-spill have also been included.
“This is about making India not just self-reliant in shipping but also a responsible stakeholder in global seas,” said a senior Ministry official.
Indian Ports Bill
Ports are the gateways to India’s maritime economy, handling over 90 per cent of trade by volume.
The new Indian Ports Act, 2025, establishes a forward-looking framework for port development, data-driven planning, and integration with India’s global commitments on pollution control.
The Act mandates long-term evidence-based planning, requires ports to maintain emergency preparedness and reception facilities for waste, and calls for creation of State Maritime Boards and dispute resolution committees. A national maritime single-window system will centralise port-related data, enabling transparency and efficiency.
Coastal States will be empowered to set up State Maritime Boards, bringing uniform and transparent governance across India’s 12 major and 200+ non-major ports. The Bill also creates dispute resolution committees to deliver sector-specific redressal in a timely manner.
“Single-window system for maintenance and accessibility of port related data; improved trade data, and lower logistics cost are seen as logical impact. It will enhance India’s EXIM competitiveness,” said a second Ministry official.
The expected outcome include accelerated port capacity growth at local, State, and national levels; improved trade connectivity; lower logistics costs, and job creation.
Greening domestic trade
The Coastal Shipping Act, 2025, focuses on reducing logistics cost, promoting sustainable transport, and boosting India’s domestic shipping industry.
It exempts Indian vessels from licensing requirements. This allows more cargo movement through India-flagged vessels. By promoting Indian ownership of coastal fleets, the law seeks to cut dependence on foreign ships for domestic cargo movement.
A National Coastal and Inland Shipping Strategic Plan and a public National Database of Coastal Shipping will guide investment and policy priorities. Promotion and development of integrated coastal and inland waterways routes is part of the upscaling measures.
The government projects India’s coastal cargo movement to rise nearly eight-fold – from the current 165 million tonnes to 1,300 million tonnes by 2047.
Modernising trade contracts
This Carriage of Goods by Sea Act replaces archaic carriage laws with simplified provisions, and adopts the globally-recognised Hague-Visby Rules that govern liabilities and rights of carriers and shippers.
It will facilitate smoother implementation of trade pacts like the Comprehensive Economic and Trade Agreement (CETA) between India and the UK, particularly for sea-borne exports.
Officials said the law enhances transparency, commercial efficiency, and strengthens India’s credentials as a maritime trading country on a par with global standards.
Certainty in documentation
Bills of lading and documents crucial to maritime trade now have a clear, modern legal framework.
The Bills of Lading Act provides for the transfer of rights of suit and liabilities to the consignee, or lawful endorsee, reducing ambiguity that often lead to litigation.
By simplifying language and aligning with best practices, the Act promotes ease of doing business and ensures smoother transactions between carriers, shippers, and lawful holders of Bills of lading.
According to Rajiv Jalota, former Chairman, Mumbai Port Authority, the legislations are more than statutory updates. They are strategic enablers supporting India’s vision under Maritime India Vision 2047. They create a more competitive environment for Indian shipping and port services.
“They strengthen our position in global trade and maritime governance. I see immense opportunities ahead – that include safer seas and greener shipping to a more robust logistics chain that can power India’s growth story,” he said in a post on Linkedin.
“India’s maritime sector is set for deeper waters, and a stronger global presence,” he added.
Backed by numbers
India’s broader maritime ambitions are anchored in a sector that has already made progress in the last decade.
From being ranked 23rd globally in shipbuilding in FY14, India has moved up to the 16th spot. It aims to break in to the top 10 by 2030 and top 5 by 2047.
Shipbuilding output is projected to rise from 0.1 million GT (gross tonnage) at present to 4.5 million GT by 2047. Indian-owned and flagged tonnage is set to grow over ten-fold to 150 million GT, by 2047 (35 GT by 2030).
Coastal shipping and inland waterways cargo movement are also expected to see exponential growth – to 230 mt and 200 mt in 2030; and 1,300 mt and 500 mt in 2047, respectively.
Taken together, these legislations mark the most comprehensive reforms in India’s maritime history.
As India positions itself for the next phase of growth, the seas here, once regulated by outdated colonial laws, are now charted for Amrit Kaal.
Published on August 25, 2025
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