Parliament Passes Coastal Shipping Bill, 2025 to Boost India’s Maritime Economy

The Coastal Shipping Bill, 2025 was passed by the Rajya Sabha on 7 August 2025, after clearance from the Lok Sabha on April 3, 2025.

  • The bill replaces Part XIV of the Merchant Shipping Act, 1958 with a modern legal framework aligned with global cabotage norms.
  • Union Minister Sarbananda Sonowal, who introduced the bill, stated it will help increase India’s coastal cargo share to 230 million metric tonnes by 2030.
  • Key Features:
    • Introduces a simplified licensing system for coastal shipping.
    • Provides a framework for regulating foreign vessels in coastal trade.
    • Mandates a National Coastal and Inland Shipping Strategic Plan to guide future policy and infrastructure.
    • Proposes a National Database for Coastal Shipping to support transparency and investment.
  • The bill aims to enhance supply-chain security, promote Indian vessel usage, reduce foreign dependence, and generate local employment.
  • With its passage, all three key maritime laws are now approved:
    1. Merchant Shipping Bill, 2025
    2. Carriage of Goods by Sea Bill, 2025
    3. Coastal Shipping Act, 2025
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