·PIB·15 marks·250–350 wordsEconomyEnvironmentS&T

Discuss how India's maritime legislative reforms of 2025 strengthen its claim to be a hub for a rules-based Indo-Pacific maritime order.

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In this answer
  1. Key reforms of 2025
  2. How the reforms strengthen the hub claim
  3. Limitations

In 2025, Parliament replaced colonial-era shipping laws, including the Indian Bills of Lading Act, 1856 and the Merchant Shipping Act, 1958, with a modern code aligned to global standards [2][4]. At Sagarmanthan 2026, India presented this framework as its basis for a "free, open, secure and rules-based maritime order" [1].

Key reforms of 2025

  • Bills of Lading Act, 2025 replaced the 169-year-old law. It came into force with the Carriage of Goods by Sea Act, 2025 on 10 September 2025 [2][3].
  • Merchant Shipping Act, 2025 cut a 561-section law down to 325 clauses and gives effect to India's obligations under IMO conventions [4].
  • Coastal Shipping Act, 2025 brings coastal shipping rules into one law and promotes an Indian-owned coastal fleet for security and commercial needs [5].

How the reforms strengthen the hub claim

  • Legal certainty: shipping documents written in simple language that matches global practice reduce uncertainty for foreign shippers and lenders [3].
  • Following the rules it asks others to follow: Indian law now reflects IMO standards on safety, pollution and seafarers. This makes India more credible when it calls for rules at sea [4].
  • Ease of doing business: the new laws reduce the compliance burden and move from heavy regulation to enabling policy, which builds investor confidence [4].
  • Fair and predictable penalties: unlicensed coastal trade used to carry up to six months in jail and a fine of up to ₹1,000. It now carries a fine of up to ₹15 lakh or four times the gain, whichever is higher [6].
  • A model for other countries: the Ministry presented the "modern legal framework" as a way to build capacity for Global South partners such as Seychelles [1].

Limitations

  • Laws do not create ships: India had only about 1,552 Indian-flagged vessels (13.65 million gross tonnage) in late 2024 [7], so most of its trade travels on foreign ships.
  • Implementation: subordinate rules and enforcement are still being built. If penalties keep changing, investors will find it hard to plan.

The 2025 reforms give India the legal credibility a maritime hub needs. To turn this into leadership, India should notify the rules quickly, keep penalties stable, and match the laws with a bigger fleet and capacity-building support for partners under SAGAR/MAHASAGAR. This fits Article 51 of the Constitution, which asks the state to respect international law, and SDG 14 on oceans. It would also make India a rule-maker, not only a rule-taker, in the Indo-Pacific.

Sources

  1. 1Sagarmanthan 2026 opening: PM's message on a rules-based maritime order, PIB"free, open, secure and rules-based" order; the legal framework offered for regional capacity-building
  2. 2Parliament Passes 'Bills of Lading, 2025' Bill, Replaces 169-Year-Old Colonial-Era Shipping Law, PIBrepeal of the 1856 Act
  3. 3Implementation of Bills of Lading Act, 2025, PIBin force from 10.09.2025 with the Carriage of Goods by Sea Act; simplified, globally aligned framework
  4. 4Parliament Passes Merchant Shipping Bill, 2025, PIBreplaces the 1958 Act; 325 clauses; IMO convention alignment; lighter compliance
  5. 5Parliament Clears Coastal Shipping Bill, 2025, PIBconsolidated coastal shipping law; Indian-owned coastal fleet
  6. 6The Coastal Shipping Bill, 2024, PRS Legislative Researchpenalty changed from jail plus ₹1,000 fine to ₹15 lakh or four times the gain
  7. 7Parliament Question: Ship Building Industry, PIB1,552 Indian-flagged vessels, 13.65 million gross tonnage (Nov 2024)
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