Merchant Shipping Bill, 2025

Introduction

On August 11, 2025, the Indian Parliament passed the Merchant Shipping Bill, 2025, replacing the decades-old Merchant Shipping Act, 1958. This landmark legislation aims to modernize India’s maritime laws, boost shipping tonnage, and align with International Maritime Organisation (IMO) conventions.

The move is being hailed as a “maritime reform milestone”, with the government aiming to make India a stronger player in the global shipping industry.

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Why the New Bill Was Needed

The old 1958 Act had become bulky and outdated, with 561 sections spread across multiple amendments over the years. The new Bill simplifies and streamlines regulations into 16 Parts and 325 clauses, making them easier to implement, understand, and adapt to modern challenges.

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Key Features of the Merchant Shipping Bill, 2025

1. Expanded Ship Ownership

• Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), joint ventures, and corporate entities can now own Indian-flagged ships.
• Introduction of Bareboat Charter cum Demise (BBCD) registration — ships can be registered under the Indian flag even before full payment is completed.

2. Digitalisation & Ease of Doing Business

• Electronic registration and licensing for ships.
• Digital inspection systems based on ship risk profiles.
• Reduced paperwork and faster clearances to attract foreign and domestic investors.

3. Safety & Security Enhancements

• Powers to detain stateless vessels operating in Indian waters.
• Modernised investigation protocols for maritime accidents.
• Strengthened salvage and emergency response mechanisms.

4. Environmental & IMO Compliance

• Aligns Indian maritime law with major IMO conventions.
• Stronger focus on pollution control and environmental safeguards.
• Improved standards for seafarer welfare.

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Strategic Importance

Boosting India’s Maritime Share

India accounts for only 1.4% of global shipping tonnage, despite handling a significant chunk of world trade. The Bill aims to:

• Increase Indian-flagged vessels.
• Reduce reliance on foreign ships.
• Save valuable foreign exchange.

Encouraging Investment

Simplified rules will:

• Improve the bankability of shipping projects.
• Attract more shipowners to register under the Indian flag.
• Drive growth in shipbuilding, ports, and allied sectors.

Seafarer Welfare

Better legal protection, clearer rights, and improved working conditions for Indian seafarers.

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Complementary Maritime Reforms

The Bill is part of a larger maritime policy overhaul, alongside:

• Coastal Shipping Bill, 2025
• Carriage of Goods by Sea Bill, 2025

Together, these reforms are expected to strengthen India’s Blue Economy and leverage its 7,500+ km coastline.

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Conclusion

The Merchant Shipping Bill, 2025 is not just a policy update — it’s a strategic blueprint for transforming India into a global maritime leader. By modernising laws, expanding ownership opportunities, and embracing digitalisation, the Bill sets the course for a future-ready shipping industry