The Coastal Shipping Act, 2025

Summary of Coastal Shipping Act, 2025
The Coastal Shipping Act, 2025 is a landmark piece of maritime legislation enacted in August 2025. It replaces the outdated Part XIV of the colonial-era Merchant Shipping Act, 1958, establishing a modern, dedicated legal framework to govern India's coastal shipping sector.
Primary Objectives
• Modernization & Growth: To streamline and update laws governing coastal trade, aiming to increase coastal cargo movement to 230 million metric tonnes by 2030.
• Self-Reliance and Maritime Security: To build a robust, citizen-owned and operated coastal fleet supporting the visions of Aatmanirbhar Bharat (Self-Reliant India) and Viksit Bharat (Developed India).
• Ease of Doing Business: To ease regulatory compliances, remove redundant barriers, and promote domestic participation in the maritime sector.
• Supply Chain Efficiency: To lower domestic logistics costs and integrate coastal shipping seamlessly with inland waterways.
Key Provisions
1. Simplified Licensing Framework
• Exemptions for Indian Vessels: Vessels wholly owned by Indian citizens or entities are exempted from licensing requirements, drastically reducing compliance burdens and operational delays.
• Regulation of Foreign Vessels: While domestic ships face fewer barriers, strategic regulatory control and mandatory licensing are retained for foreign vessels operating within Indian coastal waters.
2. Expanded Scope of Coasting Trade
• Unlike previous laws that narrowly defined coasting trade around cargo and passenger movement, the 2025 Act broadens the definition to include modern commercial activities such as marine exploration, offshore research, and specialized services.
• Covers a diverse range of watercraft, including ships, boats, sailing vessels, and mobile offshore drilling units (regardless of whether they are self-propelled).
3. National Coastal and Inland Shipping Strategic Plan
• Mandates the Central Government to formulate a comprehensive strategic roadmap (with biennial updates) to guide infrastructure development, route optimization, and operational efficiency across coastal and inland water networks.
4. National Database of Coastal Shipping
• Establishes a centralized, real-time national database to ensure data-driven governance, transparency, and accessible insights for potential investors and policymakers.
5. Strict Enforcement and Penalties
• Empowers the Director General of Shipping with clear regulatory oversight to issue directives concerning coastal security.
• Introduces strict enforcement measures—including the detention of vessels—for severe violations, such as operating without a required license, furnishing false data, or defying official instructions.

Legislative History:
The Coastal Shipping Act, 2025

Source: Official Record of Parliament, India Code, and Ministry of Ports, Shipping and Waterways

Act Title - The Coastal Shipping Act, 2025
Act Number - Act No. 20 of 2025
Act ID (India Code) - 202520
Presidential Assent date - August 09, 2025
Enforcement Date - August 09, 2025
Nodal Ministry - Ministry of Ports, Shipping and Waterways

Precedent & Historical Rationale
● Replacement & Modernization of Coastal Framework: Repeals and replaces Part XIV of the Merchant Shipping Act, 1958, separating coastal shipping into a dedicated statutory framework to promote domestic coasting trade and streamline maritime logistics.
● Encouraging Domestic Fleet & Regulatory Oversight: Exempts Indian-flagged vessels from licensing requirements while regulating non-Indian vessels via DG Shipping permits, introduces a National Database of Coastal Shipping, and mandates a National Coastal and Inland Shipping Strategic Plan.

Parliamentary Trajectory & Enactment
● Formulation: Introduced as the Coastal Shipping Bill, 2025 by the Ministry of Ports, Shipping and Waterways to reduce national logistics costs, enhance supply chain security, and build a resilient citizen-owned coastal fleet.
● Parliamentary Passage: Passed by the Lok Sabha on April 3, 2025, and subsequently passed by the Rajya Sabha on August 7, 2025.
● Presidential Assent: Received the assent of the President of India on August 09, 2025.
● Enforcement: Enforced on August 09, 2025 .