The Rajya Sabha has passed the Coastal Shipping Bill, 2025, marking a significant step in India’s efforts to reform its maritime sector and boost economic growth through coastal trade. The Bill, which was moved by Union Minister of Ports, Shipping, and Waterways Sarbananda Sonowal, aims to simplify compliance requirements for Indian shipping operators and strengthen the nation’s maritime logistics infrastructure.

Minister Sonowal, while presenting the Bill, highlighted that India’s coastline of over 7,500 kilometres is an underutilised asset that has the potential to transform the country’s trade dynamics. By reducing the regulatory burden on Indian ships, the legislation seeks to make coastal shipping a more attractive and competitive mode of transport compared to road and rail.

The Coastal Shipping Bill is designed to streamline procedures, cut red tape, and encourage private sector participation in the sector. According to the minister, simplifying rules for registration, documentation, and cargo movement will save both time and operational costs, enabling faster movement of goods along India’s ports and coastal routes.

One of the Bill’s core objectives is to integrate coastal shipping into the broader national logistics and transport network, ensuring smoother connectivity between ports and hinterland markets. This is expected to boost multi-modal transport efficiency, especially for industries located near coastal areas, such as steel, cement, chemicals, and agriculture.

The legislation also contains provisions to enhance safety standards, improve port facilities, and incentivise greener shipping practices. Environmental sustainability is a key focus, with the ministry encouraging the use of cleaner fuels and energy-efficient vessels.

Minister Sonowal noted that the new framework will allow Indian shipping companies to compete on a level playing field with foreign operators while ensuring that the benefits of coastal trade are maximised for domestic players. He emphasised that this reform aligns with the Government of India’s vision of reducing logistics costs from the current 13-14% of GDP to single-digit figures, bringing them in line with global benchmarks.

Industry experts have welcomed the Bill, stating that it will unlock the full potential of India’s vast coastline and play a critical role in making maritime trade a growth engine for the economy. The move is expected to encourage investments in coastal shipping infrastructure, including port expansion, shipbuilding, and cargo handling facilities.

However, the passage of the Bill in the Rajya Sabha did not come without challenges. The session saw disruptions and protests from opposition members over unrelated political issues, but the government managed to secure the necessary votes for its passage.

With this approval, the Coastal Shipping Bill now awaits Presidential assent before becoming law. Once enacted, it is expected to catalyse a new phase of growth in India’s maritime economy, supporting the Make in India initiative and strengthening India’s position in global trade.

In the long run, the reforms brought by this legislation could result in lower freight costs, reduced road congestion, and less environmental pollution, while also generating jobs in the shipping, port, and logistics sectors.

The government has indicated that implementation will be closely monitored, with periodic reviews to ensure the Bill’s objectives are met and to incorporate industry feedback for continuous improvement.

This marks another strategic push by the Modi government to transform India’s transport and trade infrastructure, underscoring the belief that the maritime sector holds the key to unlocking the nation’s next phase of economic expansion.

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