In a major push to India’s maritime development, the Parliament has passed the Coastal Shipping Bill 2025, aimed at unlocking the immense potential of the country’s 11,098-km-long coastline across nine coastal states and four union territories.
The legislation, introduced by the Ministry of Ports, Shipping & Waterways (MoPSW), replaces Part XIV of the Merchant Shipping Act, 1958 with a modern framework aligned with global coastal trade norms. It simplifies the regulatory process, introduces a streamlined licensing mechanism, and facilitates greater participation of Indian ships in domestic cargo transport.
Key highlights of the Coastal Shipping Bill, 2025 include:
- Simplified Licensing System: Easier access for Indian vessels to participate in coastal shipping.
- Regulation of Foreign Vessels: Clear guidelines for foreign ships engaged in coasting trade.
- National Coastal and Inland Shipping Strategic Plan: A comprehensive roadmap for infrastructure development and policy formulation.
- Creation of a National Database: Real-time, authentic data for stakeholders to monitor development plans and investment opportunities.
The bill aims to raise the coastal cargo share to 230 million metric tonnes by 2030, contributing to India’s larger mission of Aatmanirbhar Bharat and Viksit Bharat.
With this legislation, India also completes a critical reform trifecta alongside the Merchant Shipping Bill, 2025 and the Carriage of Goods by Sea Bill, 2025, marking a comprehensive overhaul of its marine regulatory framework.
According to Union Minister Sarbananda Sonowal, “This bill is a strategic enabler of economic growth, employment, and supply chain efficiency. It will also reduce foreign exchange outflow by strengthening Indian participation in domestic maritime logistics.”
The Coastal Shipping Act, 2025 is expected to:
- Enhance logistics efficiency across states like Gujarat, Maharashtra, Kerala, Tamil Nadu, Odisha, Andhra Pradesh, and West Bengal.
- Create new employment opportunities in port towns and coastal industrial hubs.
- Support sustainable transport alternatives by shifting cargo movement from roads to waterways.
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