In a historic moment towards boosting the coastal economy of the country, the Coastal Shipping Bill, 2025 was passed by the Rajya Sabha on August 07, 2025. This historic act is set to unlock the tremendous and vast potential of India’s 11,098 kms long strategic coastline, spanning nine coastal states and four union territories. 

The Bill, which was earlier passed by the Lok Sabha on April 3, 2025, seeks to simplify and modernise the legal framework governing coastal shipping, replacing Part XIV of the Merchant Shipping Act, 1958 with a new-age, progressive legislation aligned with global cabotage norms.

It introduces a simplified licensing system for coastal shipping and lays down the framework for regulating foreign vessels engaged in coasting trade. Additionally, the Bill mandates the formulation of a National Coastal and Inland Shipping Strategic Plan to guide future infrastructure development and policy direction. Once implemented, the bill is expected to significantly enhance supply-chain security by increasing Indian ships’ participation in domestic cargo movement.