The Lok Sabha passed the Coastal Shipping Bill, 2024, on April 3, 2025. The Bill provides a legal framework while upgrading the dated provisions of earlier legislations like the Merchant Shipping Act, 1958. It introduces key provisions for licensing and regulating foreign vessels in India’s coasting trade, including the removal of the general trading license requirement for Indian ships (Clause 3), reducing compliance burdens and enhancing ease of doing business.
Further, it mandates the formulation of a national coastal and inland shipping strategic plan and establishes a national database for coastal shipping. The Bill seeks to reduce logistics costs and promote sustainable transport.