India, with a coastline that is approximately 11,098 km long, spanning nine states and four Union Territories, boasts one of the busiest trade routes in the world. The country has 12 major and 200 minor ports, besides 30 shipyards. In terms of merchant shipping fleets, India is ranked 20th in the world. According to a FICCI (Federation of Indian Chambers of Commerce & Industry) report, seaways facilitate 70 per cent of India’s total trade in terms of value and a whopping 95 per cent of our foreign trade.
In order to accelerate the growth of our maritime sector over the next 10 years, the Ministry of Ports, Shipping & Waterways prepared Maritime India Vision 2030 (MIV 2030) in 2021. More than two years later, in 2023, the government expanded upon MIV 2030 and formulated the AmritKaal Vision 2047, which is a more detailed plan for maritime transformation in the next 25 years.
Now, in a major step that takes the country closer to achieving AmritKaal Vision 2047, the Monsoon Session of the Parliament cleared five key legislations: The Merchant Shipping Bill, the Indian Ports Bill, the Coastal Shipping Act, the Carriage of Goods by Sea Act, and the Bills of Lading Act.
Sup-Port-ing Growth
Before we delve into these five legislations and their impact, let us look at some of the major infrastructure development the government has undertaken to boost India’s maritime power.
In May this year, the Prime Minister inaugurated Vizhinjam International Deepwater Seaport in Kerala. India’s first dedicated container transhipment port, it has been built at a cost of ₹ 8,800 crore. As per a DD news report, Vizhinjam can handle even the largest cargo ships in the world, thus reducing our dependence on foreign ports.
In January 2024, Kerala had witnessed two more major milestones — the opening of a new 310-metre dry dock at Cochin Shipyard Ltd (CSL) and the International Ship Repair Facility (ISRF), which is said to be the largest in Asia. Together, they were built at a cost of ₹ 2,769 crore.
Some of the other notable steps include the Jal Marg Vikas Project, which aims to aid cost-effective cargo transport by improving inland navigation along the Ganga. Work is also progressing fast on the Vadhvan Deep Draft Port in Maharashtra’s Palghar and a new container terminal at Tuna Tekra (Gujarat). It is also important to mention the Western Dock Project at Paradip Port (Odisha) and the green hydrogen hubs at Kandla (Gujarat), Tuticorin (Tamil Nadu), and Paradip.
The five new legislations that were recently passed add impetus to these consistent and comprehensive efforts taken by the government. They replace colonial-era legislation with an aim to improve India’s maritime efficiency, trade, and environmental impact. Let us now take a closer look at them:
(I) Bills of Lading Bill, 2025
An important document in shipping, the bill of lading is essential for legal security and clarity. It mentions details about the quantity, type, and condition of goods being carried. The new Bill updates the Indian Bills of Lading Act, 1856. It aims to improve India’s maritime efficiency and international trade by streamlining business transaction processes and reducing legal disputes. The new bill has been drafted using simple language, which is easy to understand. Aligning with international standards, it is expected to enhance efficiency, transparency, and elevate India’s position in the global shipping scenario. The new Bill also gives the Centre the power to take appropriate measures for its seamless implementation.
(II) Carriage of Goods by Sea Bill
Replacing the Indian Carriage of Goods by Sea Act, 1925, the new Bill aims to provide a more conducive environment for maritime trade, improve operational effectiveness and reduce legal uncertainties. The main focus of the Bill is on updating India’s maritime laws and bringing more clarity to the rights, duties, immunities, and responsibilities of sea carriers. The existing provisions have been simplified to make them easier to understand. The Bill is in alignment with the Hague Rules, which ensures consistency with global practices and standards. The new legislation also vests power in the hands of the Centre.
(III) The Merchant Shipping Bill
The new legislation, which replaces the Merchant Shipping Act of 1958, aims to enhance India’s economic growth. The Bill has multiple provisions to increase India’s fleet size, including expanding the eligibility criteria for ship ownership and registering foreign ships chartered by Indian businesses. Another major highlight is that it aims to increase the capacity of ships registered in India. The Bill also pays attention to improving maritime education. It establishes a certification system, in alignment with international maritime labour standards, for our seafarers. Steps have also been suggested to prevent environmental harm.
(IV) Coastal Shipping Bill
The new legislation is expected to create more employment opportunities for Indian seafarers and also boost our shipbuilding industry by banning foreign ships involved in unlicensed coastal trade, and issuance of licenses based on the citizenship of the crew and location of ship construction. In a bid to enable information sharing and improve transparency, a National Database for Coastal Shipping will be created. There’s also a comprehensive plan for developing coastal and inland shipping, which will further benefit from our proximity to major global shipping routes. The Bill further addresses the concerns of coastal shipping license holders by ensuring that their licenses cannot be revoked or suspended unilaterally, without giving them a chance to be heard. It addresses the inconsistencies in the colonial-era law, too.
(V) Indian Ports Bill
Modernising India’s port operations is the main objective of this Bill, which amends the Indian Ports Act of 1908. It addresses environmental concerns such as pollution control, alignment with international maritime practices, development of integrated ports, enabling ease of business, vesting more powers in the hands of state maritime boards for better governance, faster dispute resolution, establishment of the Maritime State Development Council, and paying more attention to emergency response and disaster management.
Future Forecast
As per government sources, India’s cargo handling capacity has increased from 819 million tonnes in 2014-15 to around 1,600 million tonnes last year. In the same timeframe, India’s port capacity has also almost doubled to 2,762 million metric tonnes per annum. Other significant improvements over the last decade include improved vessel turnaround time (from 93 to 49 hours), and the annual net surplus increasing from ₹ 1,026 crore to ₹ 9,352 crore.
Modernisation of shipping laws is expected to keep the momentum rising and boost India’s maritime trade. It is estimated to save us logistics costs of ₹ 10,000 crore annually and also increase our modal share from six per cent.
Along with the reforms, the government has allocated a budget of ₹ 40,000 crore to the sector in the coming years. This comprehensive approach — top-notch infrastructure, improved port governance, ease of doing business, and updated laws — is touted to fetch investments from across the globe. As per a DD News report, India is poised to attract investments of 12 lakh crore rupees over the next 10 years and fulfil our vision of becoming a global maritime power by 2047.