Charting a New Course: An Overhaul of India’s Maritime Legislation
INTRODUCTION
The Indian government has introduced multiple initiatives, including the ‘Maritime India Vision 2030’, with the objective to position India as a global maritime hub in trade, finance and shipbuilding. India’s maritime sector has expanded substantially over the past 10 years. Cargo handling at major ports was 855 million tonnes in FY 2024–25, compared to 581 million tonnes in FY 2014–15. Port capacity rose nearly 87 percent in the same period. Average turnaround time for ships has been reduced to 48 hours, matching global benchmarks. Coastal shipping volumes more than doubled over such period, rising by 118 percent, while cargo movement on inland waterways increased nearly sevenfold.1
To improve upon and accommodate these growth spurts, the Indian government has recently adopted five pivotal legislations in the maritime sector replacing the pre-Independence laws with modernized counterparts – (i) the Merchant Shipping Act, 2025 (“MSA 2025”); (ii) the Indian Ports Act, 2025 (“IPA 2025”); (iii) the Coastal Shipping Act, 2025 (“CSA 2025”); (iv) the Carriage of Goods by Sea Act, 2025 (“COGSA 2025”); and (v) the Bills of Lading Act, 2025 (“BOLA 2025”).
These legislations are aimed at facilitating ease of business, aligning Indian framework with international conventions and accelerating investment in the maritime sector by reducing registration requirements, procedural delays and creating a more predictable and efficient business environment. While the Coastal Shipping Bill, 2025 was being introduced in the Parliament, the Union Ministry of Ports, Shipping and Waterways stated that the legislation is central to India’s ambition of “increasing its coastal cargo share to 230 million metric tonnes by 2030.”2
This note seeks to highlight certain key provisions introduced in these legislations and recent policy amendments.
FACILITATING EASE OF BUSINESS
A significant reform under the MSA 2025 is the extension of the list of persons eligible to own vessels in India – this list has been extended to include overseas citizens of India, non-resident Indians and other entities designated by the Government.3
To ease fleet acquisition, the MSA 2025 introduces flexibility for Indian charterers using foreign vessels to register their vessels through bareboat charter-cum-demise contracts, allowing registration before final ownership transfer.4
In a major boost to domestic shipping, the CSA 2025 exempts Indian-flagged vessels from requiring a license to engage in coastal trade, eliminating a significant procedural hurdle.5 Further, the CSA 2025 provides that foreign vessels registered under the Inland Vessels Act, 2021, subject to the permission of the Director-General, are not required to obtain additional registration for coastal trade in coastal waters, unifying inland and coastal waterways and maximizing the potential of India’s extensive waterway network.6 These changes are supported by a policy focus on enhancing physical port infrastructure and connectivity, with the goal of integrating coastal and inland waterway routes to facilitate seamless domestic goods movement.
The MSA 2025 allows the Central Government, by notification, to require all service providers or agents handling Indian or other vessels in coastal waters to specify all charges, including fixed and conditional costs, in the bill of lading or transport document, providing a potential solution to the practical challenge of hidden and unpredictable costs faced by charterers.7
MODERNISING INDIA’S MARITIME INFRASTRUCTURE AND TRADE PRACTICES
In a crucial move, the COGSA 2025 officially adopts the globally recognized Hague-Visby Rules, bringing the maritime transportation laws in India to international standards for bills of lading and cargo liability. This move will facilitate the implementation of international trade agreements.
To enhance efficiency, the IPA 2025 includes a provision that enables the Central Government to require any port to adopt a Port Community System, a national single-window system to streamline the electronic flow of trade-related information among stakeholders.8
The MSA 2025 also grants statutory recognition to electronic agreements, records, database, and logbooks in addition to electronic licenses, certificates and payments. This is complemented by the BOLA 2025, which introduces electronic Bills of Lading (“eBLs”), a reform poised to reduce dependency on physical documentation.
ADMINISTRATIVE REFORMS
The IPA 2025 establishes the Maritime State Development Council (“MSDC”), an apex advisory body to establish a National Perspective Plan for long-term development – this plan will be binding on the Union and State Governments. In addition, the MSDC will also be responsible for issuing guidelines for major and non-major ports to ensure transparency in port tariffs.
For the facilitation of the non-major ports, the IPA 2025 provides statutory recognition to the existing State Maritime Boards and further mandates the setting up of State Maritime Boards in every coastal state within six months. The State Maritime Boards will be responsible for the development and administration of the non-major ports, including the determination of the port tariffs. This step will ensure clarity and transparency for investors and operators.
Apart from major and non-major ports, the IPA 2025 also introduces the concept of ‘mega ports’, which may be notified as such by the Government. The Government has declared that six port clusters with capacities ranging from 300 MTPA to 500 MTPA are set to be developed as mega ports by 2047.9 Development of these mega ports, especially the Vadhavan port on the western coast, aligns with India’s broader infrastructure goals, to connect the country through sea and rail links to Europe through the Middle East, as highlighted in the G20 summit in New Delhi last year.10
The IPA 2025 provides providing a mechanism for timely and sector-specific redressal of disputes by establishing a Dispute Resolution Committee in each state to adjudicate disputes between non-major ports, concessionaires, and users, thereby eliminating the need to approach the civil courts for port-related disputes.11
COMMITMENT TO ENVIRONMENTAL SUSTAINABILITY
The new legal framework embeds environmental protection as a core principle of port and shipping operations in line with India’s global commitments. The IPA 2025 explicitly mandates compliance with international conventions such as the International Convention for the Prevention of Pollution from Ships (MARPOL) and the Ballast Water Management Convention.12 Ports are now statutorily required to prepare port waste reception and handling plans13 and provide adequate reception facilities for vessel-generated waste with mandatory periodic audits to ensure compliance.14 In preparedness, ports are also required to develop emergency response plans for natural disasters, oil spills and marine pollution.15
The MSA 2025 further introduces a comprehensive liability regime for dealing with environmental issues, with dedicated chapters on Civil Liability for Oil Pollution Damage Convention, 1992, the Bunker Convention, 2001, and the International Oil Pollution Compensation Fund, ensuring that economic growth does not come at the expense of ecological responsibility.16 The stricter liabilities and compliance with international conventions not only highlights the efforts of the Indian government to meet global requirements but also aims to satisfy the concerns of various stakeholders including environmental groups, coastal population and marine life.
TAXATION
Under the Indian Income-tax Act, 1961, Indian companies engaged in the business of operating ‘qualifying ships’ can opt for a presumptive taxation regime, where taxes are determined based on the net tonnage of the ships rather than the actual profits earned during the year. A ‘qualifying ship’ is defined as a seagoing vessel that meets specified conditions. The scope of this regime has been expanded through the Finance Act, 2025 to include inland vessels within the definition of ‘qualifying ship.’ As a result, starting from the financial year 2025-26, the operation of inland vessels will also qualify for presumptive taxation based on net tonnage.
CONCLUSION AND LOOKING FORWARD
India’s new maritime legislative package is a comprehensive reform of the existing framework, creating a modern, integrated, and business and investor-friendly ecosystem. The introduction of these legislations collectively signal a paradigm shift.
However, the journey from legislation to seamless implementation presents its own set of challenges. Stakeholders will keenly observe the rule-making process which will set the tone on how successful and efficient the envisioned changes would be. For instance, while the COGSA 2025 modernizes liability rules, further clarification may be needed on the scope of terms like “port” and “goods” in the context of multimodal transport to prevent ambiguity. Similarly, while the dispute resolution mechanism under the IPA 2025 is a welcome step, there is a lack of clarity on a statutory appeal mechanism against penalties imposed by the port conservator. The success of these landmark reforms will ultimately hinge on coordinated digital adoption across the supply chain, the development of robust cybersecurity for systems like the eBL platform, and inclusive capacity-building for all stakeholders.
For investors, this legislative overhaul is a powerful statement of intent. It provides a consolidated, and more predictable legal roadmap that is better aligned with international best practices. Following the legislative overhaul, on September 24, 2025, the Union Cabinet has also announced a package to revitalize India’s shipbuilding and maritime sector which is aimed at strengthening domestic capacity, improving long-term financing, promoting greenfield and brownfield shipyard development, enhancing technical capabilities and implementing legal, taxation and policy reforms to create a robust maritime infrastructure.17
1. https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2157621
2. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2153799
3. Section 15(1), MSA 2025
4. Section 16, MSA 2025
5. Section 3(1), CSA 2025
6. Proviso to Section 3(1), CSA 2025
7. Section 317, MSA 2025
8. Section 69, IPA 2025
9. https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2117248
10. https://www.seatrade-maritime.com/ports-logistics/india-to-create-9bn-mega-port-near-mumbai
11. Section 16, IPA 2025
12. Section 35, IPA 2025
13. Section 38, IPA 2025
14. Section 38(1), IPA 2025
15. Section 66, IPA 2025
16. Part IX, Chapter III, IV, V, MSA 2025
17. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2170573