Indian Shipping Industry Reforms And Maritime Law For Global Compliance

The Indian government has enacted two significant maritime bills aimed at modernising the shipping sector. The Merchant Shipping Bill and the Carriage of Goods by Sea Bill align India's maritime laws with international standards, promoting efficiency and global compliance.

The Indian government recently passed two maritime bills designed to modernize the shipping industry's operations both domestically and internationally. This is the first occasion that this has been possible in Indian maritime history.

The Ministry of Ports, Shipping and Waterways (MoPSW) spearheaded this initiative, creating a modern, responsive, and globally aligned maritime policy framework for India. The first bill, the Merchant Shipping Bill, 2025 was passed by the Lok Sabha (the lower house of the bicameral Parliament of India), and was set to make the governance of the shipping industry more efficient, aimed at making it more internationally compliant. The upper house of the Indian Parliament (the Rajya Sabha), meanwhile, passed the Carriage of Goods by Sea Bill, 2025. Intended to replace a century-old colonial-era bill, it aims to modernize legislation, fostering a future-ready India where maritime operations and maritime careers are streamlined, and business management is simplified.

The passage of these two bills, designed to modernize India's shipping sector through policy and action, represents a cornerstone of the Indian PM's vision.

The Merchant Shipping Bill

The Merchant Shipping Bill replaces the 1958 Merchant Shipping Act, aligning India’s maritime framework with global standards and strengthening India’s position as a trusted maritime trade hub. PM Shri Narendra Modi has been instrumental in pushing through a series of legal reforms over the past 11 years, of which the merchant Shipping Bill is one. It is aimed at strengthening growth for India’s shipping and maritime sectors.

These reforms will significantly improve efficiency, openness and global competitive in their intended domain. Modi has spoken out on the outdated nature of the antiquated 1958 Act, saying that it failed to address the IMO’s (International Maritime Organization) conventions in the 21st century. He said the old bill was bulky, fragmented and old-fashioned and merited replacement.

The new bill has 16 parts and 325 clauses and is looking into the future by aligning India’s shipping sector with international conventions, enhancing safety at sea, making emergency response better and making good environmental protection. Also, it reduces compliance burdens and promotes Indian tonnage, while making seafarer welfare and ship safety more important. It targets unlocking sustainable growth, investment and innovation in the industry.

Carriage of Goods by Sea Bill

The second bill to be passed was aimed at repealing a century-old Carriage of Goods by Sea Act. It aims to modernize India’s legal framework by replacing outdated colonial-era laws and promoting global best practices, thereby improving the ease of doing business. This bill utilises the Hague-Visby Rules, which are a globally accepted principle followed by countries such as the UK.

Through clarification the legislation is designed to simplify maritime trade laws, lessen litigation risks and enhance transparency and commercial efficiency in cargo movement by sea. The bill is a key step in making India’s maritime trade laws aligned with International Trade Agreements, including the Comprehensive Economic and Trade (CETA) with the UK. There were issues raised during discussions in Parliament about smuggling and maritime security, but government officials assured the interested parties that all statutory and operational safeguards were being addressed. The bill received bipartisan support as it travelled through the Houses of Parliament