Parliament Passes Five Key Maritime Bills to Boost Blue Economy

Syllabus: GS3/Economy

Context

• The Parliament has passed five key bills in the just-concluded Monsoon Session, which overhauled colonial-era maritime laws and will boost the Blue Economy.

About

• The new bills are the Bills of Lading 2025, the Carriage of Goods by Sea Bill 2025, the Coastal Shipping Bill 2025, the Merchant Shipping Bill 2025, and the Indian Ports Bill 2025.
  • The Bills of Lading, 2025, focuses on simplifying legal documents to reduce disputes and improve the ease of doing business. 
  • The Carriage of Goods by Sea Bill, 2025, replaced a 1925 Act, adopting Hague-Visby Rules for reduced litigation and stronger international ties. 
  • The Coastal Shipping Bill, 2025, targets reviving India’s 6% modal share, saving around Rs 10,000 crore annually in logistics costs, and also reducing pollution and road congestion. 
  • The Merchant Shipping Bill, 2025, overhauled an outdated 1958 act, enabling expeditious wreck removal and salvage operations.
  • The Indian Ports Bill, 2025, replaced an old 1908 law, created a Maritime State Development Council for better national planning, gave more power to state maritime boards to manage smaller ports, and set up a way to resolve disputes at the state level.

India’s Maritime Sector

• Strategic Position: Located along the world’s busiest shipping routes, India is a key trading hub and a rising global power.
• India’s Maritime Sector Overview: Handles 95% of India’s trade by volume and 70% by value, with port infrastructure critical to the economy.
• Cargo Traffic Growth: Coastal cargo traffic surged by 119% from 2014-2024, with a target of 230 million tonnes by 2030.
• Surge in Merchandise Exports: India’s merchandise exports rose to USD 451 billion in FY23, up from USD 417 billion in FY22.
• Maritime Sector’s Importance: India is the 16th-largest maritime nation, occupies a key position in global shipping, with major trade routes passing through its waters.
• Achievements: The Ministry of Ports, Shipping, and Waterways has increased cargo handling capacity by 103% in the last decade.
• Future Goals: India has outlined investments of US$ 82 billion in port infrastructure projects by 2035 to bolster the maritime sector.
  • India plans to establish a new shipping company to expand its fleet by at least 1,000 ships within a decade. 

Challenges 

• Infrastructure Gaps: Inadequate port infrastructure and outdated facilities at some ports, limiting capacity and efficiency.
• Congestion: High traffic volumes at major ports leading to delays, increased turnaround times, and reduced productivity.
• Environmental Concerns: Pollution and sustainability issues, including emissions from ships and port operations.
• Logistics Bottlenecks: Inefficient transport connectivity between ports, roads, and railways, impacting smooth cargo movement.
• Global Competition: Rising competition from other global maritime hubs, necessitates continuous investment and modernization.

Initiatives by the Government

• Sagarmala Programme: Focuses on leveraging India’s coastline and of navigable waterways.
  • Supports port infrastructure, coastal development, and connectivity.
  • Financial aid for projects like coastal berths, rail/road connectivity, fish harbours, and cruise terminals.
• Maritime India Vision 2030 (MIV 2030): Aiming for India to become a top 10 shipbuilding nation by 2030 and create a world-class, efficient, and sustainable maritime ecosystem.
  • Includes 150+ initiatives across ten key maritime sectors.
• Inland Waterways Development: 26 new national waterways identified by the Inland Waterways Authority of India (IWAI).
  • Provides alternative, sustainable transport, easing road/rail congestion.
• Green Tug Transition Program (GTTP): Aims to replace fuel-based harbour tugs with eco-friendly, sustainable fuel-powered tugs.
  • Transition to be completed by 2040 across major ports.
• Sagarmanthan Dialogue: An annual maritime strategic dialogue to position India as a global center for maritime conversations.
• Maritime Development Fund: ₹25,000 crore fund for long-term financing to modernize ports and shipping infrastructure.
• Shipbuilding Financial Assistance Policy (SBFAP 2.0): Modernized to help Indian shipyards compete with global giants.

Conclusion

• India’s maritime sector is poised for significant growth, underscored by its strategic initiatives and government schemes. 
• In 2024, the first edition of Sagarmanthan further cemented India’s commitment to becoming a global maritime leader, bringing together stakeholders to discuss key themes such as sustainability, connectivity, and governance. 
• The efforts will take India’s maritime sector toward a sustainable, innovative, and future-ready ecosystem, ensuring its place as a central player in the global maritime landscape.

Source: AIR