In a week of historic significance for India’s shipping sector, Parliament has cleared three trailblazing bills: the Merchant Shipping Bill, 2025, the Carriage of Goods by Sea Bill, 2025, and the Indian Ports Bill, 2025. Together, they constitute the widest-ranging legal overhaul of India’s shipping, port, and sea-borne trade regulation in over a century, superseding the legislation of colonial times, rationalising procedures, and positioning the industry alongside international best practices.
The passage of these bills in such a short duration, the Merchant Shipping Bill and Carriage of Goods by Sea Bill having been cleared on August 6, and the Indian Ports Bill having been cleared on August 12, is an unparalleled parliamentary achievement for the Ministry of Ports, Shipping and Waterways (MoPSW).
Union Minister Sarbananda Sonowal has termed the development as “a decisive step towards positioning India as a global maritime leader” and “a double endorsement from Parliament” of the vision of Prime Minister Narendra Modi for a modern, efficient, and future-ready shipping and port industry.
Gratitude to Hon’ble Members of the Lok Sabha for passing the Indian Ports Bill, 2025.
A milestone in India’s maritime journey, this landmark legislation replaces the colonial-era Act of 1908 with a forward-looking framework to:
✅ Promote integrated port development & optimum… pic.twitter.com/SgNv841JLs
— Sarbananda Sonowal (@sarbanandsonwal) August 12, 2025
The government has framed these reforms as part of the overall attempt to implement the vision of Viksit Bharat by 2047, and ports, shipping, and waterways as drivers of economic growth, job creation, and a green environment. The three laws, officials said, are intended to improve ease of doing business, foreign investment, reduce logistics costs, and bring India more in line with global conventions for trade and shipping.
A trifecta of reform: From colonial models to world leadership
The new act replaces maritime legislation that had, in most cases, been in operation since the late 19th century. The Merchant Shipping Act, 1958, the Indian Ports Act, 1908, and the Indian Carriage of Goods by Sea Act, 1925, which were enacted during a period when India’s shipping was servile to colonial commerce requirements, have been repealed or superseded by laws meant to position the country as a competitive and respected maritime jurisdiction.
The reforms are against the backdrop of spectacular growth in India’s maritime strength. Cargo handling at large ports has nearly doubled in the last decade, from more than 819 million tonnes in 2014-15 to over 1,600 million tonnes in 2024, while India has become one of the world’s biggest providers of seafarers. Governments have argued that without modernised governance and legal frameworks, these achievements would be stifled by regulatory hurdles, antiquated standards, and inefficiencies.
Merchant shipping bill: Turning the page from regulation to enablement
The Lok Sabha passed the Merchant Shipping Bill, 2025, on August 6 and the Rajya Sabha on August 11. The new bill replaces the burdensome Merchant Shipping Act, 1958, with 561 sections. The new act lowers maritime regulation to 16 parts and 325 clauses, lowering compliance requirements significantly while ensuring full implementation of India’s obligations under the significant International Maritime Organisation (IMO) conventions. Sonowal called the bill “a clear step towards making India a trusted maritime trade centre” and noted that it was a shift in strategy from being regulation-focused to facilitating policy spaces.
Grateful to members of the Rajya Sabha for passing the Merchant Shipping Bill, 2025, a landmark reform to modernise India’s maritime laws and align them with global best practices.
Led by the vision of Hon’ble PM Shri @narendramodi Ji, this Bill replaces an outdated, bulky… pic.twitter.com/q3UTMEjLrf
— Sarbananda Sonowal (@sarbanandsonwal) August 11, 2025
The provisions promote safety of navigation, strengthen emergency response and salvage operations, safeguard the marine environment, and promote seafarer welfare. The Act seeks to increase tonnage in the Indian flag through greater attractiveness of the jurisdiction as a place of ship registration, strengthen coastal security and defend India’s maritime interests, and ensure sustainable development by way of protection of the environment. It seeks to promote innovation and investment in shipbuilding and related industries as well.
Agencies point out that the reforms align Indian law with international best practice, thus improving “bankability” in the eyes of foreign investors, and bringing Indian shipping operations and ports into position to soak up an expanding share of global trade, supply jobs, and serve the cause of Atmanirbhar Bharat.
Carriage of goods by sea bill: Replacing a century-old law
The Carriage of Goods by Sea Bill, 2025, passed by the Rajya Sabha on August 6 after earlier clearance by the Lok Sabha, repeals the Indian Carriage of Goods by Sea Act, 1925. This colonial-era legislation, in force for nearly 100 years, has been replaced with a framework based on the Hague-Visby Rules, a globally accepted standard followed by maritime nations, including the United Kingdom.
Union Minister of State for Ports, Shipping and Waterways Shantanu Thakur, who tabled the Bill in the Upper House, said the law was a part of the Modi government’s broader initiative to eliminate “traces of colonial thinking” and replace them with modern, industry-oriented legislation.
This Bill is not only a legislative change, it is a reflection of a broader philosophy of rule… to substitute complication with simplicity, traditional norms with modern norms, colonial inheritance with progressively minded laws that are in the interest of an emerging India,” he stated.
🇮🇳 Bharat’s Bold Strides towards Maritime Atmanirbharta! ⚓
Moved by Hon’ble Union Minister of PS&W, Shri Sarbananda Sonowal, and passed by Parliament, the Coastal Shipping Bill 2025 seeks to regulate vessels engaged in coastal shipping, promote coastal trade and encourage… pic.twitter.com/vuUPkDbD7F
— Ministry of Ports, Shipping and Waterways (@shipmin_india) August 7, 2025
The legislation provides authority to the Centre to modify schedules and issue directions for enforcement, and provides a very precise legal framework for bills of lading, which are records presented by carriers to shippers listing the type, amount, and state of goods. It is forecast to reduce litigation risks, enhance commercial efficiency in shipping sea cargo, and maximise compatibility with international trade agreements like the Comprehensive Economic and Trade Agreement (CETA) with the United Kingdom.
The Bill was welcomed across party lines, with some MPs pointing to the doubling of cargo handling capacity at key ports over the last decade as proof of the sector’s resilience and growth.
Indian Ports Bill: Modern governance in a “Ports for prosperity” vision
The Indian Ports Bill, 2025, passed by the Lok Sabha on August 12, supersedes the 115-year-old Indian Ports Act, 1908 and establishes a new, contemporary framework for managing India’s ports with special emphasis on sustainability, transparency, and ease of doing business. One of its hallmark features is the establishment of the Maritime State Development Council (MSDC), a body that comprises representation of both the Centre and States to align port development plans and promote cooperative federalism.
The legislation also strengthens the foundations of State Maritime Boards to deal with the non-major ports effectively and creates Dispute Resolution Committees to quickly resolve port, user, and provider disputes. The bill is oriented towards reducing the cost of logistics by facilitating the movement of cargo and improving hinterland connectivity, and increasing competitiveness through transparent tariff policies and better investment regimes.
It promotes coastal shipping and port integration with inland waterways and multimodal transport networks, fosters public-private partnerships (PPPs) and foreign investment in port facilities, and insists on anti-pollution operations, renewable energy implementation, and disaster preparedness in all the ports.
Sonowal said the Bill was “all about creating an ecosystem which facilitates our maritime industry to provide impetus to the process of Viksit Bharat,” and that it is a follow-up to earlier efforts such as Sagarmala Programme and Maritime India Vision 2030, which have already laid a very good foundation for port-led development.
Congruence with International Best Practices. All of these three acts share a common thread: bringing India’s maritime regulation in sync with international standards while keeping its particular strategic and economic interests intact. From assuming the Hague-Visby Rules for the carriage of goods, to compliance with IMO conventions for shipping safety, to upgrading port management systems, the changes are designed to keep India competitive amidst the era of rapidly evolving world trade patterns.
Sustainability of the environment is a recurring theme. The bills call for pollution control, use of renewable energy, and disaster management legislation in harmony with international conventions such as MARPOL and the Ballast Water Management Convention.
Atmnirbhar Bharat vision
The government anticipates the collective effect of the three bills to be revolutionary, reducing regulatory complexity, enhancing safety and efficiency, and facilitating more effective investment structures.
These changes will be expected to raise India’s contribution to global maritime trade, lower the exporter’s cost of logistics, generate jobs in shipping, port handling, logistics, warehousing, and allied industries, as well as raise the country’s status as a maritime power and a dependable trading partner.
With over 12 major ports and over 100 minor ports, India is well-placed to benefit from these changes for domestic economic growth as well as stronger linkage into international supply chains. A Legislative Milestone for the Ministry passing of bills in one Parliament session is a first in the history of the Ministry of Ports, Shipping and Waterways.
Sonowal called it “the most extensive legislative push in the Ministry’s history” and credited the Modi government with the political will for achieving such rapid and wide-ranging change.
In the past 11 years, under the leadership of Prime Minister Narendra Modi, we have witnessed unprecedented growth in our seaborne exports and shipping. With these acts, our shipping, ports, and waterways are going to carry a much greater share of the world trade, spurring economic growth and directly aiding the vision of Viksit Bharat,” he said.
The future of India’s maritime sector
While passage of the bills is an important step, their real effect will depend on implementation. That will be through Centre-State coordination, participation of the private sector, induction of new technologies, and capacity building in the maritime manpower.
The emphasis on “future-readiness” by the government, from digitising port operations to preparing the nation for environmental and security challenges, suggests that the maritime economy will remain a focus area in the coming years as well. Overhauling laws, strengthening governance mechanisms, and remaining in sync with global best practices, India is not only positioning itself as a participant in global shipping but also as a rule-maker.
With the legislative landscape now modernised, the test is to turn these provisions into operational brilliance so that India’s ports, shipping corridors, and maritime trade facilities not only catch up but set global standards. As India moves toward its centenary of independence in 2047, these reforms are likely to be remembered as the watershed in its journey to becoming a leading maritime nation.
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