The Merchant Shipping Act, 2025 | Redefining a New Era for India’s Maritime Sector | RIS | Research and Information System for Developing Countries

The Merchant Shipping Act, 2025 | Redefining a New Era for India’s Maritime Sector

Author Name

Anushka Tripathi

Published On

Tuesday, 09 September 2025

The Merchant Shipping Bill, 2024, was recently passed in the monsoon session of Parliament on 11 August 2025, and approved by the President of India on 18 August 2025, marking it a transformative milestone for India’s maritime sector.

Introduced by the Ministry of Ports, Shipping and Waterways, it repeals the Merchant Shipping Act of 1958 and the Coasting Vessels Act of 1838, replacing them with a modern legislative framework aligned with India’s current economic ambitions and global maritime standards.

Since independence, India’s shipping capacity has grown from just 0.37 million Gross Tonnage (GT) in 1947 to over 13 million GT by 2024 (official MoPSW data). Yet for decades, this growth operated under the old legal provisions, out of sync with advanced vessel technology, automation, environmental protection needs, and international conventions & obligations.

Merchant Shipping Bill, 2025

Speaking on the subject, at the Lok Sabha, Shri Sarbananda Sonowal, Union Minister for Ports, Shipping & Waterways, Government of India, called this bill “a decisive legislative step towards making India a global maritime leader, by simplifying laws, enhancing safety and environmental standards, and creating a facilitative business environment.”

Key focus areas of the new Merchant Shipping Act

Ease of doing business

The Act sets an enabling policy environment that shifts focus from heavy regulation to facilitation, boosting investor confidence. Provisions for electronic registration, remote registration for Indian-flagged vessels, and temporary registration for vessels destined for recycling to simplify administrative processes. The act also facilitates, reduced compliance burden, more investor-friendly norms, and direct alignment with international obligations, to transform existing maritime jurisdictions, more "universal and enabling”.
Under the Act, all vessels will need to be registered, except for those that are not mechanically propelled or weigh less than 15 tons and are used solely for navigating the Indian coasts. Additionally, the definition of vessels has been expanded to include mobile offshore drilling units, submersibles, and non-displacement crafts, further broadening the scope of registration.
Safety, environmental protection, and security – The Act incorporates provisions from international conventions (MARPOL, Nairobi Wreck Removal, Salvage Convention, and Bunker Oil Convention), which strengthen standards for safety, emergency preparedness, pollution control, and effective response to marine accidents. Statutory powers allow for detaining of stateless vessels in Indian waters, enhancing maritime security and protecting India’s coastline.
Maritime employment and competitiveness –India is already among the world’s largest suppliers of trained seafarers, statutory recognition of welfare norms and training will improve employment prospects and professional standards for Indian mariners, driving growth in this sector. Improved procedures for recruitment and skill alignment with global standards will further cement India’s reputation as a source of quality maritime talent.
Expanded vessel ownership criteria- Ownership rules have been significantly relaxed. Indian-flagged vessels can now be wholly or partially owned by Indian citizens, companies, Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), or registered co-operative societies. The government will prescribe thresholds for partial ownership, including joint ventures, and offers flexibility for vessels registered by OCIs. The Act will also allow for bareboat charter-cum-demise vessels to be registered, encouraging leasing and broadening access to ship ownership.
Streamlined legal framework/ seafarer welfare –

The new law condenses the sprawling 561 sections of the 1958 Act into 325 concise clauses spread across 16 parts. This reduces compliance burdens and offers clearer regulation.
Aligned with Maritime Labour Convention (MLC) norms ensuring better working and living conditions, medical support, pensions, and regulated recruitment agencies.
Regarding shipping authorities, the Act retains the government’s power to appoint the Director-General of Shipping, who will now be referred to as the Director-General of Marine Administration. The Act also maintains the establishment of advisory boards, including the National Shipping Board and the National Welfare Board for Seafarers, ensuring continued guidance and oversight in the maritime sector. It also focuses on the regulation of maritime training institutes and continue the requirement for certain officers to be certified and empowers the Director-General of Marine Administration to regulate maritime education, approve training institutes, and set standards for courses. This is crucial for maintaining high levels of expertise and professionalism within the sector.

Comparative Overview

Table 1 – Old Act vs. New: Key Provision Changes

Feature / Provision	Merchant Shipping Act, 1958	Merchant Shipping Act, 2025
Number of Sections/Clauses	561 Sections	325 Clauses (16 Parts)
Vessel Ownership	Only Indian citizens & companies	Indians, NRIs, OCIs, Co-ops, JVs
Registration Scope	Ships >15 GT, limited categories	All vessels incl. offshore units, submersibles, non-displacement crafts
International Conventions	Limited provisions	Full alignment with MARPOL, MLC 2006, Nairobi, Salvage, Bunker Oil
Bareboat Charter Registration	Not explicitly recognised	Recognised & facilitated
Electronic Registration	Not available	Enabled (remote & e-registration)
Seafarer Welfare	Fragmented norms	Fully MLC 2006-compliant

Transformative Impact of the new Merchant Shipping Act 2025

(Source: Ministry of Ports, Shipping & Waterways Annual Report)

Key Insights

Although India’s fleet capacity has multiplied 35 times since independence. The new Act will ensure the legislative provisions, match the sector’s scale and ambitions for Maritime India Vision 2030 and the Maritime Amritkaal Vision 2047, by enabling the undermentioned objectives.

Positioning India as a Global Maritime Hub

By modernising laws and reducing bureaucratic barriers, India could seize a larger share of international maritime trade. The Act aims to increase shipping tonnage under the Indian flag, a long-standing objective to reduce foreign currency outflows for shipping and cultivate a strong domestic fleet.

Strengthening Safety, Security, and Resilience

The broadened scope for marine casualty inquiry and enforcement of IMO conventions enhances the investigative, emergency response, and environmental protection capabilities of Indian maritime authorities.
Empowering the central government to detain stateless vessels bolsters security along India’s extensive coastline, crucial for both economic and strategic interests.

Boosting Employment and Skills

With India already among the world’s largest suppliers of trained seafarers, statutory recognition of welfare norms and training will improve employment prospects and professional standards for Indian mariners, driving growth in this sector.
Improved procedures for recruitment and skill alignment with global standards will further cement India’s reputation as a source of quality maritime talent.

Fulfilling International Commitments

The Act ensures comprehensive adoption of obligations under major IMO conventions, paving the way for India’s full participation and credibility in the global maritime regulatory environment.

Supporting Sustainable Growth and Innovation

Integrated environmental protection norms, promotion of ship recycling, and encouragement of technological innovation (from submersibles to offshore drilling units) empowers the sector with forward-looking provisions.

Broader role of DG Shipping

The law provisions government to, appoint a person to be the Director-General of Maritime Administration for the duties conferred or imposed upon him by or under this Act. This role empowers DGMA to holistically address the maritime administration.

Catalysing “Viksit Bharat” and Economic Development

The Hon. Minister of Ports, Shipping & Waterways called the Act “a decisive step towards positioning India as a trusted maritime trade hub,” a move set to drive economic growth, employment, and the vision of a developed India (“Viksit Bharat”).

Conclusion

The Merchant Shipping Act, 2025 offers a bold, comprehensive answer to the long-standing needs of India’s maritime ecosystem. It is not just a legal reform, but a strategic reorientation from heavy-handed regulation to facilitation and enablement, from outdated frameworks to global best practices, and from fragmented provisions to cohesive legislations.

The new law, will empower the Ports, Shipping, and Waterways sectors to play a central role in national building, safeguarding the environment, and unlock unprecedented economic opportunities for the nation for global trade.

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