India’s new Coastal Shipping Bill gets Rajya Sabha nod

Parliament passes Coastal Shipping Bill, aims to make coastal trade easier. In a historic moment towards boosting the Coastal Economy of the country, the Coastal Shipping Bill, 2025 was passed by the Rajya Sabha today. This historic act is set to unlock the tremendous and vast potential of India’s 11,098 kms long strategic coastline, spanning nine coastal states and four union territories. The bill was proposed for adoption by the Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal. The Bill which was earlier passed by the Lok Sabha on April 3, 2025, seeks to simplify and modernize the legal framework governing coastal shipping replacing Part XIV of the Merchant Shipping Act, 1958 with a new age progressive legislation aligned with global cabotage norms. Introducing the Bill in the Rajya Sabha, Union Minister Sarbananda Sonowal stated that the legislation is central to India’s ambition of “increasing its coastal cargo share to 230 million metric tonnes by 2030, while strengthening the maritime sector’s contribution to Aatmanirbhar Bharat and Vikshit 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 competitiveness of Indian vessels, and aligns with the Prime Minister Shri Narendra Modi ji’s long-term vision to make India a global maritime hub,” the Union Minister said.

The Coastal Shipping Bill, 2025 comprises six chapters and 42 clauses. It introduces a simplified licensing system for coastal shipping and lays down the framework for regulating foreign vessels engaged in coasting trade. Additionally, the Bill mandates the formulation of a National Coastal and Inland Shipping Strategic Plan to guide future infrastructure development and policy direction.

The legislation also provides for the creation of a National Database for Coastal Shipping, enabling real-time access to authentic and regularly updated data. This database will keep potential investors informed about the government’s development plans and policy priorities in the sector, promoting transparency and confidence.