The approval of two bills advances the country’s legislative intent to align its shipping laws with global standards.
India’s shipping sector received a major legislative boost on Wednesday as Parliament passed two landmark bills introduced by the Ministry of Ports, Shipping and Waterways: the Merchant Shipping Bill, 2025 and the Carriage of Goods by Sea Bill, 2025. Lawmakers from the ruling National Democratic Alliance coalition said the move marks a comprehensive overhaul of the maritime legal framework, aimed at making it modern, efficient and globally aligned.
In the Lok Sabha, the Merchant Shipping Bill, 2025, was cleared to streamline maritime governance through a contemporary and internationally compliant framework. It replaces the outdated Merchant Shipping Act of 1958. Meanwhile, the Rajya Sabha passed the Carriage of Goods by Sea Bill, 2025, repealing the colonial-era Carriage of Goods by Sea Act, 1925, and introducing legislation designed to promote ease of doing business and future-proof India’s shipping sector.
Union Minister Sarbananda Sonowal hailed the passage of both bills as a strong endorsement of Prime Minister Narendra Modi’s vision to modernise India’s maritime sector in both policy and practice.
“With the passage of the bills, the Modi government’s push for India’s modern shipping gets double endorsement from the Parliament,” Sonowal said.
The two bills are part of a broader legislative package to align India’s shipping laws with global standards. On July 21, Parliament approved the Bills of Lading Bill, 2025, establishing a simplified and internationally harmonised legal framework for maritime documentation. With three bills now cleared, only the Coastal Shipping Bill, 2024, remains pending with the Rajya Sabha, having already been passed by the Lok Sabha in April 2025.
Merchant Shipping Bill, 2025
The Merchant Shipping Bill, 2025, is seen as a progressive reform that aligns India’s maritime legal framework with international conventions and strengthens its position as a trusted global trading hub.
Introducing the bill in the Lok Sabha, Sonowal said, “This Bill represents a decisive step towards positioning India as a global leader in maritime trade and governance. It is a progressive and advanced legislation, up to date with international maritime conventions and informed by the best practices of leading maritime nations.”
The bill is part of a series of legal reforms undertaken over the past 11 years to enhance efficiency, transparency and competitiveness in the maritime sector. Sonowal noted that the Merchant Shipping Act, 1958 had become bulky and fragmented, with 561 sections that failed to address contemporary challenges or fully implement India’s obligations under key International Maritime Organization conventions.
Structured into 16 parts and 325 clauses, the legislation modernises India’s maritime governance by aligning with international conventions by aligning with international conventions, enhancing safety at sea and emergency response, ensuring environmental protection, reducing compliance burdens, promoting Indian tonnage and prioritising seafarer welfare and ship safety.
The bill aims to position India as a globally respected maritime jurisdiction and unlock sustainable growth, investment and innovation in the sector.
Carriage of Goods by Sea Bill, 2025
Passed by the Rajya Sabha, the Carriage of Goods by Sea Bill, 2025, replaces a pre-Independence law and reflects the government’s broader effort to eliminate colonial-era legislation and adopt global best practices.
The bill incorporates the Hague-Visby Rules, a globally accepted standard adopted by countries including the UK. By replacing complexity with clarity, the legislation is expected to simplify maritime trade laws, reduce litigation risks and enhance transparency and commercial efficiency in cargo movement.
Introducing the bill in the house, Shantanu Thakur, Minister of State for Ports, MoPSW, observed, “The repeal of this pre-Constitution era legislation and its replacement with a new legislation is a part of the greater initiative of this government to rid ourselves of all vestiges of colonial mindset and to ensure ease of understanding and ease of doing business through simple and rationalised laws.”
He added that the legislation reflects the government’s intent to replace outdated norms with modern standards and colonial remnants with forward-looking laws that serve the interests of a resurgent India.
The bill also aligns India’s maritime trade laws with international agreements, including the Comprehensive Economic and Trade Agreement with the UK. The Lok Sabha had passed the legislation earlier on 28 March.