Merchant Shipping Bill & Carriage of Goods by Sea Bill - UPSC

Parliament has passed two landmark legislations - the Merchant Shipping Bill 2025 and the Carriage of Goods by Sea Bill 2025 to modernise maritime legal framework of India and align it with global standards. The Merchant Shipping Bill replaces the Merchant Shipping Act 1958 introducing a streamlined and future-ready structure in line with International Maritime Organisation (IMO) conventions. 

The Carriage of Goods by Sea Bill repeals the Indian Carriage of Goods by Sea Act 1925 adopting the Hague-Visby Rules to simplify cargo liability laws and promote ease of doing business. Together these aim to strengthen maritime governance, enhance trade efficiency and position India as a competitive global shipping hub.

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Modernising Maritime Laws of India

The maritime sector of India was previously governed by the Merchant Shipping Act 1958 and Indian Carriage of Goods by Sea Act 1925. The laws had become outdated, fragmented and unfit for present-day maritime needs. The newly passed Bills replace these colonial-era structures. The Union Ministry of Ports, Shipping and Waterways calls the reforms a “double endorsement” of the government’s push for modern shipping infrastructure and clear legal standards.

Read Article on International Maritime Organization

Merchant Shipping Bill 2025

The Merchant Shipping Bill 2025 replaces the Merchant Shipping Act 1958 with a modern and comprehensive legal structure. It has 16 Parts and 325 clauses structured to simplify compliance, improve safety and align with International Maritime Organisation (IMO) conventions.

What are the Key Features of Merchant Shipping Bill 2025?

The Merchant Shipping Bill 2025 introduces various important provisions with an aim to enhance safety, efficiency and sustainability in the maritime sector of India -

• Seafarer Welfare – Ensures better working conditions, welfare and protection for Indian and foreign seafarers under Indian jurisdiction.
• Safety & Emergency Response – Strengthens ship safety, emergency preparedness and marine pollution control.
• Environmental Protection – Implements IMO protocols to protect marine ecosystems.
• Promotion of Tonnage – Encourages ship registration under the Indian flag to boost domestic tonnage.
• Simplified Compliance – Merges fragmented provisions to reduce red tape.

Union Minister Sarbananda Sonowal said the Merchant Shipping Bill aligns India’s laws with international conventions. It also aims to make the country a globally respected maritime jurisdiction for sustainable growth and investment.

Carriage of Goods by Sea Bill 2025

The Carriage of Goods by Sea Bill 2025 repeals the Indian Carriage of Goods by Sea Act 1925. The bill introduces a modern framework for regulating cargo transport by sea. It is important for exporters, importers, shipping companies and insurers.

What are the key features of Carriage of Goods by Sea Bill 2025?

The Carriage of Goods by Sea Bill 2025 introduces modern legal standards to streamline maritime trade and enhance shipping competitiveness of the country -

• Hague-Visby Rules Compliance – Aligns cargo liability laws with global standards used by countries like the UK and makes cross-border trade smoother.
• Commercial Efficiency – Improves transparency in contracts and dispute resolution, reducing litigation and boosting investor confidence.
• Trade Facilitation – Simplifies cargo shipping laws and makes India more attractive to international shipping and logistics businesses.

Union Minister of State Shantanu Thakur said the reform reflects the commitment of the government to replace colonial-era laws with simple, forward-looking and business-friendly legislation.

Strategic Boost to Maritime Future of India

The two new maritime Bills i.e., Merchant Shipping Bill & Carriage of Goods by Sea Bill aim to modernise governance, drive investment and strengthen India’s global shipping competitiveness. They also support environmental and employment goals. The following are the key impacts -

• Promotes ease of doing business in maritime logistics.
• Attracts investment in ports, shipbuilding and maritime technology.
• Strengthens maritime security through strong legal frameworks.
• Encourages green shipping and sustainable coastal development.
• Generates employment especially in coastal states.
• Enhances India’s ability to compete with global maritime hubs like Singapore, China and the UAE.

Conclusion

The Merchant Shipping Bill & Carriage of Goods by Sea Bill represent a significant reform in the maritime sector of India. They modernise legal and regulatory frameworks, boost ease of doing business and attract both domestic and foreign investments. The measures will enhance maritime security, promote sustainable coastal development and support the growth of the blue economy. Together, they position India to compete with leading global maritime nations.

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