In a landmark development for India’s coastal economy, the Coastal Shipping Bill, 2025 was passed by the Rajya Sabha, marking the completion of its parliamentary journey. The legislation, which received prior approval from the Lok Sabha on 3 April 2025, has now become law and is set to transform India’s maritime sector by tapping into the vast potential of its 11,098-km coastline across nine states and four union territories.

Proposed by the Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, the Bill replaces Part XIV of the outdated Merchant Shipping Act, 1958 with a progressive framework aligned with international cabotage standards. It aims to increase India's coastal cargo share to 230 million metric tonnes by 2030, in line with the national visions of Aatmanirbhar Bharat and Viksit Bharat.

Sonowal called the Act a “strategic enabler of economic growth, employment, and logistics efficiency,” highlighting its role in easing regulatory burdens, boosting Indian vessel competitiveness, and aligning with Prime Minister Narendra Modi’s goal of making India a global maritime hub.

Comprising six chapters and 42 clauses, the Coastal Shipping Act introduces a streamlined licensing system and a framework for regulating foreign vessels in domestic trade. It also mandates the development of a National Coastal and Inland Shipping Strategic Plan, designed to steer infrastructure growth and guide long-term policy.

The legislation further provides for the creation of a National Database for Coastal Shipping, offering real-time access to updated data on development plans and priorities, thereby enhancing transparency and encouraging private investment.

Once implemented, the Act is expected to strengthen supply chain security, reduce dependence on foreign vessels, and curb the outflow of foreign exchange. The government anticipates a boost to local economies, increased employment opportunities in coastal regions, and improved ease of doing business for Indian shipping operators.

“With this legislation, we are decisively building a globally competitive and efficient coastal and inland shipping ecosystem. This reform will not only unlock our coastline’s potential but also support our broader economic and strategic ambitions,” Sonowal said.

The passage of the Coastal Shipping Act completes the Ministry’s trio of major maritime legislative reforms — alongside the Merchant Shipping Bill, 2025 and the Carriage of Goods by Sea Bill, 2025 — paving the way for a future-ready, modern, and self-reliant maritime ecosystem.