Coastal Shipping Bill 2025: A Game-Changer for India’s Maritime Economy
On August 7, 2025, the Rajya Sabha passed the Coastal Shipping Bill, 2025. An important and unique achievement for India, as it sets India, on course to become a global maritime power. This bill has been passed by the Lok Sabha on April 3, 2025. Over the next five years, India aims to leverage its11,098-km long coastline to become a major economic zone by developing coastal cargo to a capacity of 230 million-metric tonnes by 2030. Despite the opposition protests regarding unrelated issues of voter list for Bihar, the passage of the Coastal Shipping Bill is a bold step to modernize the Indian maritime sector, establish an efficient regulatory framework for the move of goods at sea, and promote domestic trade. Given its significance for future economic development, the creation of new jobs and opportunities in the domestic maritime sectors, the value to be a larger player in the supply chain across Asia, and growth of sea transport and economics, the Coastal Shipping Bill, 2025 represents a major transformative engagement for the Indian maritime supply and logistics chain, which aligns with Prime Minister Narendra Modi’s aspirations of Aatmanirbhar Bharat. But with such promise, also comes great excitement and debate.
A New Era for Coastal Shipping
The Coastal Shipping Bill, 2025, which consists of six chapters and 42 clauses, replaces the Part XIV of the old Merchant Shipping Act of 1958 and seeks to bring India into line with the global practices of cabotage in shipping. Union Minister of Ports, Shipping, and Waterways Sarbananda Sonowal promoted the bill as he said it would ease compliance for Indian vessels while promoting the ease of doing business initiative. The bill proposes a new regulatory structure principal for Indian-owned coastal shipping licensing thresholds to allow for easy entry by domestic users – with licensing to be replaced so Indian-owned vessels don’t require a license to operate while foreign ships are subjected to coastal regulation. This is predicted to provide Indian owned vessels to be the go-to for domestic cargo movements and obtain domestic goods without recourse to foreign vessels and economize valuable foreign exchange for the country.
A key aspect of the bill is the creation of a National Coastal and Inland Shipping Strategic Plan, which will inform infrastructure development and subsequent policy priorities. It also establishes a National Database for Coastal Shipping that will provide current, transparent information to investors to build confidence and add momentum across the sector. Steps like these will unlock India’s nine coastal states and four union territories and turn ports into a vehicle of economic prosperity. The bill is one of three reforms being introduced related to the maritime industry, as the Merchant Shipping Bill, 2025 and the Carriage of Goods by Sea Bill, 2025 were also passed this past month, making a comprehensive effort to modernize India’s maritime ecosystem.
Economic and Strategic Impacts
The Coastal Shipping Bill is more than just a legal reform; it’s a key part of India’s economic goals. By increasing coastal cargo to 230 million metric tonnes by 2030, the legislation aims to improve supply-chain security, lower logistics costs, and create thousands of jobs, especially in coastal communities. Union Minister Sonowal pointed out that coastal shipping is much cheaper and greener than rail or road transport, making it a sustainable option for India’s growing economy. Posts on X reflect this view, highlighting the bill’s potential to boost local shipbuilding and improve maritime competitiveness.
The bill supports the Modi government’s Sagarmala program, which has already raised coastal shipping capacity from 87 million metric tonnes in 2013 to 165 million metric tonnes today. Investments over Rs 5.5 lakh crore in 805 projects have modernized ports and improved connectivity through railways and roads, positioning India as a global maritime hub. The legislation also supports the vision of Viksit Bharat (developed India) by reducing foreign exchange outflows, prioritizing Indian vessels, and promoting self-reliance in maritime trade.
However, the economic promise brings concerns. Some stakeholders in the local shipping industry worry about the bill’s impact on smaller operators, who could struggle to compete with larger players that benefit from simpler regulations. The debate highlights the need for inclusive policies to make sure that economic gains reach all parts of the maritime sector. Despite these worries, the bill’s focus on transparency, through tools like the National Database, is expected to attract investors and promote long-term growth.
Political Context and Opposition Protests
The bill’s passage in the Rajya Sabha had its share of drama. Opposition MPs, led by the INDIA bloc, disrupted the session. They demanded a debate on the Special Intensive Revision (SIR) of electoral rolls in Bihar, claiming it involved widespread voter deletions and questionable inclusions. Congress MPs, including Mallikarjun Kharge and Manickam Tagore, said the SIR threatens voting rights, especially for minorities and marginalized communities. This prompted intense protests that resulted in multiple adjournments.
Despite the chaos, the Coastal Shipping Bill passed through a voice vote. The chair chose to prioritize legislative business over the opposition’s demands. These protests reflect a larger political tension during the ongoing Monsoon Session. The opposition accuses the government of avoiding critical issues, such as electoral transparency. Finance Minister Nirmala Sitharaman and Parliamentary Affairs Minister Kiren Rijiju defended the government’s stance, urging the opposition to let the House function. They argued that the SIR issue is still being considered in court.
The disruptions resulted in a loss of 51 hours and 30 minutes of parliamentary time. This situation highlights the difficulty of balancing legislative priorities with the need for political accountability.
The Coastal Shipping Bill, 2025, is a significant move toward unlocking India’s maritime potential. By simplifying regulations, encouraging local involvement, and promoting sustainable trade, it aims to create jobs, strengthen supply chains, and establish India as a leader in global maritime trade. However, the opposition’s worries about fairness in elections remind us that good governance requires both transparency and inclusion, in addition to economic reform. As India faces these challenges, the bill’s success will hinge on its ability to ensure fair growth while addressing the needs of smaller stakeholders.
For businesses, coastal communities, and policymakers, this legislation offers many opportunities. From modern ports to more sustainable logistics, the Coastal Shipping Bill acts as a driver for progress. As the government implements its strategic plan and database,everyone will be watching how India uses its extensive coastline to spark a new era of prosperity. Join the conversation; how do you think this bill will influence India’s future?
