On August 6 2025, Parliament gave the final nod to the Coastal Shipping Bill 2025, replacing an outdated section of the Merchant Shipping Act, 1958. By August 9, with the President’s assent, it became the Coastal Shipping Act 2025.
The new law aims to transform the way goods and passengers move along India’s 11,098 km coastline, making coastal trade simpler, faster and more competitive.
Under the old rules, any vessel carrying cargo between Indian ports needed multiple licences and clearances.
The Coastal Shipping Act replaces this maze with a single, unified licence for Indian-owned ships. Foreign vessels chartered by Indian companies still need permission, but the process is much smoother.
This shift is expected to cut approval times from weeks to days, encouraging more operators to invest in coastal routes.
Boosting India’s coastal cargo share
Currently, coastal shipping accounts for just 7 per cent of India’s total freight movement.
The government’s goal is to raise this to 230 million tonnes by 2030, easing pressure on roads and rails. Moving heavy goods by sea can be up to 40 per cent cheaper per kilometre than road transport.
As shipping corridors become more accessible, farmers, miners and manufacturers along the coast will see lower logistics costs delivered straight to their doorstep.
In fact, Union Minister of Ports, Shipping and Waterways (MoPSW) Sarbananda Sonowal, while addressing THE WEEK Maritime Conclave 2025 last week, said that the investments in the maritime sector are being scaled up to Rs 80 lakh crore under the Maritime Amrit Kaal Vision 2047.
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National database for coastal shipping
To ensure transparency, the law mandates a National Database for Coastal Shipping.
This online portal will list all registered vessels, their clearances and real-time voyage data.
Exporters and importers can track shipments, while regulators gain better oversight to prevent unauthorised movements. Investors and port developers will also find clear, up-to-date information on planned infrastructure projects and policy changes.
Economic impact
More coastal trade also means more jobs. From ship crews and port workers to truckers and warehouse staff, an uptick in coastal routes will spur employment in coastal states and Union Territories.
It will also attract new industries—think cold-storage facilities for seafood or bulk terminals for minerals—bringing development to towns that have long relied on fishing and small-scale trade.
Environmentally, coastal shipping emits fewer greenhouse gases per tonne-kilometre than road or rail.
The shift could cut transport-related emissions by up to 30 per cent for eligible cargo, helping India meet its climate targets without sacrificing growth.
Passing the law is only the first step. Success depends on swift rule-making and the creation of the promised database.
Coastal states must upgrade ports, jetties and inland waterways to handle increased traffic. Training centres will be needed to develop skilled crews and shore staff.
If executed well, the Coastal Shipping Act 2025 could shift millions of tonnes from crowded highways to under-utilised sea lanes.