Syllabus: GS2/Government Policy & Intervention
Context
- Recently, the Parliament of India has passed the ‘Merchant Shipping Bill, 2025’ and the ‘Carriage of Goods by Sea Bill, 2025’ to overhaul India’s maritime legal framework.
Key Highlights of the Merchant Shipping Bill, 2025 (replacing the 1958 Act)
- Expanded Definition of Vessels: The Bill broadens the definition of “vessels” to include a wider range of marine craft, such as mobile offshore drilling units (MODUs), submersibles, and non-displacement crafts.
- Mandatory and Temporary Registration: The 2025 Bill makes vessel registration mandatory for all vessels, regardless of their propulsion type or weight. It also introduces a new provision for temporary registration, specifically for vessels intended for recycling, which helps streamline operations at ship recycling hubs like Alang.
- Relaxed Ownership Criteria: It allows for partial ownership by Indian citizens, entities registered under Indian law, registered cooperative societies, and Overseas Citizens of India (OCIs). The previous law required 100% Indian ownership.
- Enhanced Seafarer Welfare: The Bill expands welfare provisions to cover Indian seafarers working on foreign-flagged vessels, a group that was previously excluded.
- Strengthened Pollution Control: While the 1958 Act had some provisions, the 2025 Bill fully incorporates international conventions like MARPOL to prevent and combat marine pollution.
- Governance and Regulatory Changes: The Bill renames the Director-General of Shipping to the Director-General of Marine Administration. This official is also given the authority to regulate maritime education and training.
Key Highlights of the Carriage of Goods by Sea Bill, 2025 (replacing the 1925 Act)
- Adopts Hague-Visby Rules (1924): The new Bill adopts the Hague-Visby Rules (cargo movement laws), a more modern and globally accepted framework.
- Central Government Role: The government can issue directions and amend rules related to Bills of Lading — documents detailing goods carried by sea, their condition, and destination.
- Promote Ease of Doing Business: It simplifies legal language, reduces litigation risks, and improves transparency and efficiency in cargo movement.
| Understanding the Hague-Visby Rules – These are a set of internationally recognized legal standards that govern the carriage of goods by sea. – It was adopted as amendments to the original Hague Rules of 1924, they form the backbone of cargo liability law in many countries, including India. Origin and Evolution – Hague Rules (1924): Established basic responsibilities and liabilities of carriers. – Hague-Visby Protocol (1968): Updated provisions to reflect modern shipping practices. – SDR Protocol (1979): Introduced standardized compensation limits using Special Drawing Rights. Why did India adopt the Hague-Visby Rules? – Global Alignment: These rules are widely accepted in international shipping, including by the UK and EU. – Legal Clarity: They simplify cargo liability, reducing litigation and ambiguity. – Trade Facilitation: Enhances trust and transparency for exporters, insurers, and carriers. – Parliamentary Oversight: India’s new law ensures executive actions under these rules are subject to legislative review. |
Implications for India’s Maritime Future
- These two bills are not just legal updates — they represent a strategic repositioning of India as a global maritime leader.
- By aligning with international norms and streamlining governance, the Bills are expected to:
- Boost investment and innovation in the maritime sector.
- Enhance India’s competitiveness in global shipping.
- Support trade commitments under agreements like the Comprehensive Economic and Trade Agreement (CETA) with the UK.
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