On August 18, 2025, the Indian government enacted the Merchant Shipping Act, 2025, which modernizes maritime governance by establishing a framework that complies with international standards. This legislation, first introduced on December 10, 2024, replaces the outdated Merchant Shipping Act of 1958, which became increasingly ineffective in addressing contemporary maritime challenges and fulfilling India’s commitments under International Maritime Organization (IMO) conventions.
Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal, emphasized that the new Act aims to streamline India’s maritime laws, enhancing the nation’s status as a reliable maritime trade hub. The legislative overhaul was spurred by the need for a unified and coherent legal instrument capable of handling the complexities of modern maritime operations. The Lok Sabha approved the Bill on August 6, 2025, followed by the Rajya Sabha’s approval on August 11, 2025.
The Merchant Shipping Act, 2025 is a comprehensive restructuring of maritime legislation, organized into 16 Parts and encompassing 325 clauses. It aligns Indian shipping regulations with key international conventions, including the Safety of Life at Sea (SOLAS), Marine Pollution (MARPOL), Standards of Training, Certification, and Watchkeeping (STCW), and the Maritime Labour Convention (MLC).
Key features of the Act include:
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National Shipping Board: A new governing body will be established, reinforcing maritime administration through the appointment of a Director-General of Maritime Administration to oversee implementation. Additional offices, such as the Mercantile Marine Department and Shipping Offices at major ports, will facilitate administrative functions.
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Vessel Registration: All Indian vessels must be registered, and the Act specifies provisions for provisional, temporary, and foreign chartered vessel registrations. It seeks to promote transparency in the processes governing the transfer, mortgage, and closure of vessel registrations.
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Seafarer Welfare: The Act imposes a minimum employment age of 16 years and mandates medical fitness and training for all seafarers. Ship owners must ensure employment agreements, monthly wage payments, and provide paid leave, repatriation rights, and compensation related to vessel loss. Compliance with occupational health standards and access to medical care for seafarers are also included.
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Safety and Compliance: The legislation enforces adherence to international safety conventions, requiring vessels to obtain necessary stability and seaworthiness certificates. Protocols for reporting maritime incidents and assistance at sea are also established to enhance safety measures.
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Environmental Protection: The Act emphasizes environmental compliance with conventions such as MARPOL and introduces requirements for pollution prevention certificates and adequate waste reception facilities at ports.
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Liability and Compensation: A fault-based liability system for maritime accidents is introduced, incorporating mandatory insurance for oil and bunker pollution. The Act establishes compensation mechanisms through international funds and allows claimants to pursue direct legal actions against insurers.
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Marine Casualties and Emergencies: Provisions are made for appointing nodal authorities to coordinate responses to marine emergencies, including protocols for investigation and mandated insurance coverage.
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Regulation of Fishing and Small Vessels: Safety and certification requirements are instituted for fishing and small vessels, along with mandatory crew agreements and insurance coverage.
The Act contains provisions for penalties and accountability, allowing designated officers and courts to enforce compliance. It will repeal previous outdated regulations upon notification.
In summary, the Merchant Shipping Act, 2025 represents a substantial advancement in India’s maritime laws, aiming to create a robust framework that addresses contemporary issues, promotes safety and environmental responsibility, and enhances the welfare of those engaged in the maritime sector.
