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

“Coastal Shipping Bill, 2025 aims to boost coastal cargo up to 230 million metric tonnes by 2030”: Sarbananda Sonowal

In a historic moment towards boosting the Coastal Economy of the country, the Coastal Shipping Bill, 2025, was passed by the Rajya Sabha yesterday. 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 (MoPSW), Sarbananda Sonowal.

The Bill, which was earlier passed by the Lok Sabha on April 3, 2025, seeks to simplify and modernise 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 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, 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.

Once implemented, the Bill is expected to significantly enhance supply-chain security by increasing Indian ships’ participation in domestic cargo movement. “Under the visionary leadership of Prime Minister Shri Narendra Modi ji, we are working on a mission mode towards building an Atmanirbhar Bharat. In the same spirit, this bill aims to reduce India’s dependence on foreign vessels, thereby preventing the outflow of foreign exchange. In doing so, it will catalyse local economic development, generate employment opportunities across coastal regions, and strengthen ease of doing business for Indian shipping operators”, Sarbananda Sonowal further added.

“With the passage of the Coastal Shipping Bill, 2025, India takes a decisive step towards building a seamless, efficient, and globally competitive coastal and inland shipping ecosystem. This landmark reform will unlock the immense potential of our coastline, enhance supply chain resilience, and drive economic growth in line with our national vision of Viksit Bharat,” said the Union Minister Sarbananda Sonowal.

With the passage of the Coastal Shipping Act, 2025, the Ministry of Ports, Shipping & Waterways has successfully secured Parliamentary approval for all three critical marine legislations — the Merchant Shipping Bill, 2025, the Carriage of Goods by Sea Bill, 2025, and the Coastal Shipping Act — paving the way for a modern, efficient, and self-reliant maritime ecosystem in line with the vision of Viksit Bharat and Atmanirbhar Bharat.

“Under the visionary leadership of Prime Minister Narendra Modi ji, our ministry has undertaken historic legislative reforms to modernise India’s maritime sector. With the passage of all three landmark bills — the Merchant Shipping Bill, the Carriage of Goods by Sea Bill, and the Coastal Shipping Act — we are laying a strong foundation for a future-ready maritime ecosystem that supports Atmanirbhar Bharat and propels us closer to the goal of Viksit Bharat,” said Union Minister Sarbananda Sonowal.

With the passage of this landmark legislation, India moves a step closer to building an integrated, efficient, and globally competitive coastal and inland shipping ecosystem.

Disclaimer: This is an official press release by Pib.