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India Modernises Maritime Laws with New Shipping Bills

Why in NEWS

The Parliament passed the Merchant Shipping Bill, 2025, Carriage of Goods by Sea Bill, 2025, and Coastal Shipping Bill, 2025, aiming to modernise India’s maritime legal framework by replacing outdated colonial-era laws.

Key Concepts & Terms

TermDefinitionExample / Note
CabotageTransport of goods between two places in the same country by a foreign vesselCoastal Shipping Bill aligns India with global cabotage norms
Hague-Visby Rules (1924)International rules governing sea carriage of goods, defining rights and liabilities of carriers and shippersAdopted under Carriage of Goods by Sea Bill, 2025
Bill of LadingLegal shipping document detailing goods’ type, quantity, and destinationNow regulated for transparency under the new law
Seafarer WelfareMeasures ensuring safety, rights, and working conditions of ship crewStrengthened under Merchant Shipping Bill, 2025
MAITRI PlatformDigital interface for international trade and regulatory processesGovernment initiative to improve maritime trade efficiency

Key Provisions of the Maritime Bills 2025

BillKey FeaturesPurpose
Coastal Shipping Bill, 2025Replaces Part XIV of Merchant Shipping Act, 1958; simplifies licensing; regulates foreign vessels; mandates National Coastal & Inland Shipping Strategic Plan and DatabaseRaise coastal cargo to 230 MT by 2030, reduce foreign dependence, boost jobs and investor confidence
Merchant Shipping Bill, 2025Replaces Merchant Shipping Act, 1958; aligns with IMO conventions; empowers government to detain vessels without nationalityEnhance sea safety, environmental protection, seafarer welfare, and maritime security
Carriage of Goods by Sea Bill, 2025Replaces Indian Carriage of Goods by Sea Act, 1925; adopts Hague-Visby Rules; regulates Bills of LadingStandardises global trade practices, improves shipping efficiency and transparency

State of India’s Maritime Sector

AreaCurrent Status
Trade Share95% of trade by volume and 70% by value handled by sea
Port Infrastructure12 major and 200+ minor ports; major ports’ capacity grew 87% (2014–24) to 1,629.86 MT
Cargo Handled819.22 MT handled at major ports in FY24
Fleet Strength1,530 registered ships
Global Standing16th largest maritime nation; 38th in Logistics Performance Index (2023); 3rd largest ship recycler with 30% share, led by Alang
Policy PushNew Shipbuilding & Repair Policy, 100% FDI in port construction, tax holidays, and infrastructure upgrades

Government Initiatives in Maritime Sector

InitiativeObjective
One Nation-One Port Process (ONOP)Streamline port operations
Sagar Ankalan – LPPI 2023-24Assess logistics performance of ports
Bharat Global Ports ConsortiumGlobal collaboration for port growth
MAITRI PlatformDigital interface for trade and regulations
NCoEGPSResearch hub for green shipping
Maritime India Vision 2030Roadmap for sectoral growth
Green Tug Transition Program (GTTP)Promote green shipping practices

In a nutshell

India’s new maritime bills replace colonial-era laws, align the sector with global standards, and promote safety, transparency, and growth. With 95% of trade volume dependent on sea routes, modernisation of maritime laws is key to boosting India’s global shipping competitiveness.

Prelims Questions

  1. The Carriage of Goods by Sea Bill, 2025 aligns India’s laws with which international convention?
    a) Rotterdam Rules
    b) Hague-Visby Rules
    c) Hamburg Rules
    d) Manila Amendments
  2. Which of the following is NOT a provision of the Coastal Shipping Bill, 2025?
    a) National Coastal and Inland Shipping Strategic Plan
    b) Regulation of Bills of Lading
    c) Creation of National Database for infrastructure planning
    d) Simplified licensing for coastal vessels
  3. India’s largest ship-breaking yard is located at:
    a) Kochi
    b) Kandla
    c) Alang
    d) Paradip

Mains Questions

  1. Discuss the significance of the recently passed maritime bills in strengthening India’s maritime security and trade competitiveness. 10 Marks
  2. Evaluate the challenges and opportunities in India’s maritime sector in light of the Maritime India Vision 2030. 10 Marks

Prelims Answers & Explanations

Q.NoAnswerExplanation
1b) Hague-Visby RulesCarriage of Goods by Sea Bill adopts these rules for global standardisation of sea trade.
2b) Regulation of Bills of LadingThis is covered under Carriage of Goods by Sea Bill, not the Coastal Shipping Bill.
3c) AlangAlang in Gujarat is the world’s largest ship-breaking yard, contributing to India’s 30% global recycling share.

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