The Coastal Shipping Bill, 2025 represents a transformative shift in India’s maritime sector, aimed at harnessing the potential of the country’s extensive 11,098 km coastline. Recently passed by Parliament on August 7, 2025, the legislation replaces outdated provisions from the Merchant Shipping Act, 1958, establishing a modern legal framework for coastal and inland shipping aligned with international practices.
Objectives of the Coastal Shipping Bill
The Bill is designed with several key goals in mind:
- Increase Coastal Cargo Share: Aim to raise the volume of coastal cargo to 230 million metric tonnes by 2030.
- Reduce Foreign Dependence: Decrease reliance on foreign vessels, thereby minimizing foreign exchange outflows.
- Enhance Competitiveness: Create a level playing field for Indian shipping companies through a simplified regulatory process.
- Boost Economic Growth: Generate employment opportunities in coastal regions and promote port-led industrialization.
- Improve Logistics Efficiency: Encourage more cost-effective and environmentally friendly shipping options compared to traditional transportation methods like road and rail.
Key Features
The Bill introduces several important features aimed at improving the maritime landscape:
- Simplified Licensing System: Easier access for Indian operators wishing to enter the coastal shipping sector.
- Foreign Vessel Regulation: Establishes clear rules for foreign ships participating in domestic cargo movement, prioritizing Indian vessels.
- National Coastal and Inland Shipping Strategic Plan: A roadmap for long-term infrastructure development and investment in maritime activities.
- National Database for Coastal Shipping: Offers real-time, transparent data to assist government decision-making and encourage private investment.
- Global Best Practices: Aligns India’s maritime laws with internationally recognized cabotage standards, enhancing competitiveness globally.
Importance for India
The Coastal Shipping Bill is pivotal for various reasons:
- Economic Impact: It strengthens port-led growth initiatives, particularly under the Sagarmala Programme, benefiting industries reliant on coastal cargo.
- Environmental Benefits: Promotes a shift from road and rail transport to maritime options, contributing to reductions in carbon emissions.
- Strategic Security: By boosting the use of Indian vessels, the Bill enhances supply-chain resilience and reduces dependency on foreign shipping services.
- Employment Generation: It is projected to create new jobs in sectors such as shipbuilding, port services, and logistics.
Comparison with the Merchant Shipping Act, 1958
The Coastal Shipping Bill, 2025 stands in contrast to the Merchant Shipping Act in several ways:
- Regulatory Scope: The previous act addressed coastal shipping as part of a broader context, while the new Bill focuses specifically on coastal and inland shipping.
- Licensing: The existing law involved complex licensing, whereas the new framework introduces a simpler, expedited process.
- Foreign Vessel Rules: The former did not align with global cabotage, while the Bill establishes clear guidelines.
- Data System: A centralized national database for coastal shipping will enhance transparency compared to the lack of such a system in the earlier legislation.
- Policy Roadmap: The new Bill includes a long-term strategic plan, absent in the past framework.
Conclusion
The Coastal Shipping Bill, 2025 is positioned not just as a legislative update but as a fundamental enabler for economic growth, maritime security, and sustainable transport solutions in India. This reform aims to improve competitiveness, increase domestic cargo movement, and fortify India’s standing as a leading maritime nation. With a target of 230 million tonnes of coastal cargo by 2030, this initiative marks a crucial step in transforming India into a global maritime hub.
