Unpacking India's New Maritime Laws: Opportunities and Challenges

India’s New maritime laws and Their Impact

India has introduced four major maritime laws in 2025— the Indian Ports Bill, Coastal Shipping Act, Carriage of Goods by Sea Bill, and Merchant Shipping Act. These reforms aim to modernise maritime governance and align with global standards. However, experts caution that they may also bring new challenges.

1. Indian Ports Bill, 2025

Objective: Centralises power under the Maritime State Development Council to ensure uniform policies and global alignment.

Concerns: Weakens state autonomy by shifting authority to the Centre. This could upset the federal balance and make ports heavily reliant on central approval.

Impact: While uniform rules may attract global investors, trust between the Centre and States could erode.

2. Coastal Shipping Act, 2025

Objective: Promotes domestic coastal trade by ensuring only Indian-flagged vessels can operate.

Concerns: Provisions allowing license denial for vague reasons such as “national security” could be misused. Smaller operators may struggle with compliance costs.

Impact: Encourages Indian players but risks shrinking competition and squeezing out small shipping companies.

3. Carriage of Goods by Sea Bill, 2025

Objective: Updates outdated provisions on shipping finance, liability, and dispute resolution.

Concerns: Some ambiguities limit judicial oversight, excluding courts from certain port-related disputes. This reduces checks and balances.

Impact: Enhances compatibility with global trade practices but may weaken impartial redress mechanisms.

4. Merchant Shipping Act, 2025

Objective: Modernises safety standards, liability rules, ship registration, and expands environmental obligations.

Concerns: The provision for Bareboat Charter cum Demise (BBCD) registration lets foreign-owned vessels sail under the Indian flag. This may undermine sovereignty and burden small coastal operators with compliance costs.

Impact: Strengthens India’s profile as a maritime hub but risks foreign dominance and unfair competition.

Overall Impact

Positives:
• Modernises India’s maritime framework.
• Aligns with international norms.
• Attracts global shipping investment.

Negatives:
• Risks excessive centralisation.
• Burdens smaller operators.
• May create loopholes favouring foreign entities.
• Weak judicial oversight could backfire.

Synopsis

India’s four new maritime laws—the Ports Bill, Coastal Shipping Act, Carriage of Goods by Sea Bill, and Merchant Shipping Act—are designed to modernise governance and attract global investment. While they align with global standards, critics highlight concerns over centralisation, compliance burdens, and risks to small operators. The key challenge is to balance reform with federalism, fair competition, and maritime sovereignty.