News Brief
Explained: Coastal Shipping Bill 2025 — The Maritime Overhaul To Unlock India’s 11,098 Km Coastline Potential
Illustration: Cargo Containers depicting India's Map (Representative Image)
The Parliament, on Thursday (August 7), passed the Coastal Shipping Bill, 2025, a landmark move aimed at unlocking the vast potential of India’s 11,098 km strategic coastline, which spans nine coastal states and four Union territories, the Ministry of Ports, Shipping and Waterways said in a statement.
Replacing Part XIV of the Merchant Shipping Act, 1958, the Bill introduces a modern and simplified framework for regulating coastal shipping in line with global cabotage standards.
Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said the Bill aims at “increasing its coastal cargo share to 230 million metric tonnes by 2030, while strengthening the maritime sector’s contribution to Aatmanirbhar Bharat and Viksit Bharat.”
“This is not merely a legal reform but a strategic enabler of economic growth, employment, and logistics efficiency. The Bill reduces regulatory burdens, enhances the competitiveness of Indian vessels,... to make India a global maritime hub,” he added.
With this legislation, the ministry has completed its reform drive alongside the Merchant Shipping Bill, 2025, and the Carriage of Goods by Sea Bill, 2025, establishing a modern policy framework for a competitive and future-ready maritime ecosystem.
Sonowal said that it is designed to cut dependence on foreign vessels and stem the outflow of foreign exchange. It is also expected to spur local economic growth, create jobs across coastal regions, and improve the ease of doing business for Indian shipping operators.
He described the passage of the Bill as “a decisive step towards creating a seamless, efficient, and globally competitive coastal and inland shipping ecosystem.”
He called it a landmark reform that would unlock the potential of India’s coastline, strengthen supply chain resilience, and drive economic growth in line with the vision of Viksit Bharat.
Key Objectives
Cut Dependence on Foreign Vessels: Reduce foreign exchange outflow by strengthening the role of Indian ships in domestic trade.
Enhance Competitiveness: Provide a level playing field for Indian operators through regulatory simplification.
Support Economic Growth: Create jobs in coastal regions and improve logistics efficiency.
Main Features
Simplified Licensing: Easier entry for operators in coastal shipping.
Foreign Vessel Regulation: Clearly defines conditions for foreign ships in domestic cargo movement.
National Coastal and Inland Shipping Strategic Plan: Offers a long-term policy and infrastructure roadmap.
National Database for Coastal Shipping: Provides real-time, transparent data to guide investors and planners.
Once rolled out, the Bill is expected to strengthen supply-chain security by increasing the participation of Indian ships in domestic cargo transportation.
