Lok Sabha Passes Merchant Shipping Bill, 2025: A Bold Step Toward Maritime Modernization
New legislation to overhaul India’s outdated maritime law, align with global standards, and boost seafarer welfare and shipping efficiency.
New Delhi, August 6, 2025 — In a significant push to modernize India’s maritime sector, the Lok Sabha has passed the Merchant Shipping Bill, 2025, a landmark legislation that replaces the six-decade-old Merchant Shipping Act, 1958. Passed by voice vote, the new bill is poised to reshape India’s maritime governance in line with international conventions and best practices.
Why India Needed a New Maritime Law
The original 1958 Act, once a foundational pillar of India’s shipping policy, had grown unwieldy with 561 sections due to numerous amendments over the decades. More critically, it failed to keep pace with rapid global changes in the merchant shipping industry.
Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, who introduced the bill, called it “progressive and forward-looking.” He emphasized that the updated law reflects India’s commitment to enhancing maritime safety, environmental responsibility, and economic growth, aligning with International Maritime Organization (IMO) standards.
Key Drivers Behind the Reform
- Obsolete framework: The 1958 law was outdated and fragmented, making it ill-equipped to address modern shipping issues.
- Global compliance: India needed legislation that conforms to contemporary international maritime conventions.
- Ease of doing business: The new bill is designed to simplify compliance and attract more investment into the maritime sector.
- Seafarer and ship safety: Modern provisions ensure better welfare of crew members and enhanced safety protocols.
What the Merchant Shipping Bill, 2025 Brings
The new bill condenses and streamlines the law into 16 parts and 325 clauses, delivering a sharper, more efficient legal structure. Key provisions include:
Empowering Authorities
- The Centre can detain foreign vessels without a recognized flag or legal nationality if found operating in Indian waters.
Broader Ownership Criteria
- Expands eligibility for ownership and registration of merchant vessels, encouraging more players to enter the sector.
Marine Investigations
- Introduces structured procedures for investigating marine casualties and accidents at sea.
Liability and Compensation Framework
- Establishes clear guidelines for maritime liability and compensation in case of collisions, cargo loss, or property damage.
- Allows for limitation of liability in specific cases and creation of a limitation fund.
Focus on Seafarers and Environment
- Prioritizes seafarer welfare, ship safety, and improved emergency responses.
- Enhances provisions for environmental protection in maritime operations.
A Strategic Leap for India’s Maritime Future
The Merchant Shipping Bill, 2025 is more than a legislative update—it’s a strategic investment in India’s vision of becoming a global maritime power. By replacing a bloated and outdated act with a lean, modern framework, the government is signaling its commitment to efficiency, sustainability, and global competitiveness.
Industry experts see the bill as a timely move that could boost Indian tonnage, attract foreign investment, and improve India’s standing in the global maritime community.
As India’s ports and shipping sectors brace for transformative growth, this reform could prove to be a foundational shift—anchoring India’s future as a maritime leader in the 21st century.