The passage of the Coastal Shipping Bill, 2025 marks a transformative moment for India’s maritime sector, setting the stage for an era of accelerated growth, enhanced supply-chain resilience, and strategic economic empowerment.

This historic legislation, cleared by the Rajya Sabha on August 7, 2025 after having passed the Lok Sabha on April 3, 2025, replaces the decades-old Part XIV of the Merchant Shipping Act, 1958, introducing reforms that modernise the legal framework governing India’s coastal shipping and align the sector with international cabotage standards.

Envisioned and championed by the Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal, the bill encapsulates a comprehensive strategy to realize India’s vast coastal potential spanning 11,098km, across nine states and four union territories.

Central to the new Act is its ambitious goal of increasing India’s coastal cargo share to 230 million metric tonnes by 2030—a significant leap reflecting the nation’s determination to strengthen its maritime capacity and reinforce the “Aatmanirbhar Bharat” (self-reliant India) and “Viksit Bharat” (developed India) agendas.

The Coastal Shipping Bill comprises six chapters and 42 clauses, each meticulously designed to simplify operational processes, reduce regulatory friction, and bolster the competitiveness of Indian shipping vessels.

By shifting to a simplified licensing system, it makes compliance easier for operators, while also detailing a regulatory structure for foreign vessels engaged in coastal trade, thus protecting domestic interests and supporting the retention of foreign exchange within the country.

A notable innovation within the Act is the mandate to develop the National Coastal and Inland Shipping Strategic Plan. This blueprint will provide clear direction for infrastructure investments, policy evolution, and modernisation, ensuring the sector remains responsive to future challenges and opportunities.

In tandem, the establishment of a National Database for Coastal Shipping introduces a degree of transparency rarely seen before; investors and stakeholders will have real-time access to authentic, regularly updated data on government policies and development plans, thereby fostering greater confidence and attracting fresh investments into the sector.

Supply-chain security is set to benefit substantially from the bill, as increased participation of Indian ships in domestic cargo movement will not only reduce reliance on foreign vessels but also mitigate risks associated with foreign exchange outflow.

This, combined with greater employment prospects in coastal regions and improved ease of doing business for domestic shipping operators, is expected to catalyse local economic growth and deliver meaningful social and economic dividends nationwide.

The passage of the Coastal Shipping Act, 2025 completes the Ministry of Ports, Shipping & Waterways' legislative reform trifecta—together with the Merchant Shipping Bill, 2025, and the Carriage of Goods by Sea Bill, 2025—bringing India’s marine legal architecture on par with global best practices. 

According to Minister Sonowal, this sweeping transformation paves the way for a modern, efficient, and self-reliant maritime ecosystem. Under the visionary leadership of Prime Minister Narendra Modi, these reforms lay a robust foundation for India’s future as a global maritime hub, fully aligned with the national visions of Atmanirbhar Bharat and Viksit Bharat.

The Coastal Shipping Bill, 2025 is not simply a legal amendment; it is a strategic enabler—integrating regulatory modernization, economic opportunity, policy foresight, and supply-chain efficiency. With this legislation, India takes a decisive step towards unlocking the latent potential of its coastline, enhancing logistics competency, and propelling economic growth for decades to come.

PIB