Enactment of Maritime Legislative Reforms (2025): UPSC Current Affairs Story Arc

Overview

This arc tracks the complete overhaul of India's maritime legal architecture in 2025. It began with the Lok Sabha passing the Coastal Shipping Bill in April, followed by a sweeping legislative package in August that replaced the century-old Indian Ports Act of 1908. By December 2025, a triad of new laws—the Indian Ports Act, Coastal Shipping Act, and Modernised Merchant Shipping Legislation—were formally enacted. The primary objective is to shift freight from congested roads (66%) and railways (31%) to the sea, lowering logistics costs and aligning India with global maritime standards through new institutions like the Maritime State Development Council and Dispute Resolution Committees.

How This Story Evolved

Lok Sabha passes Coastal Shipping Bill (Apr) → Parliament passes broader Maritime Bills (Aug) → Acts formally enacted and notified (Dec)

1. 2025-04-08: Coastal Shipping Bill, 2024 Passed
   More details

   UPSC Angle: Lok Sabha passes Coastal Shipping Bill, 2024.

   Key Facts:

   • Bill: Coastal Shipping Bill, 2024
   • Aims to promote cost-effective and sustainable coastal trade
   • Aims to increase coastal shipping's freight share from the current 5%
   • Reduce over-reliance on roadways (66%) and railways (31%)
2. 2025-08-13: Parliament Passes Maritime Bills
   More details

   UPSC Angle: Parliament passes maritime bills to modernize India's maritime legal framework.

   Key Facts:

   • Replaces the Indian Ports Act, 1908
   • Establishes Maritime State Development Council
   • Mandates State Governments to establish Dispute Resolution Committees (DRCs)
   • No civil court shall have jurisdiction in matters under DRC
   • Fixed by the Board of Major Port Authority or Board of Directors (for ports under Companies Act, 2013) in case of major ports
   • Coastal Shipping Bill, 2025 aims to raise coastal cargo to 230 million tonnes by 2030
   • Indian Ports Bill, 2025 passed in Lok Sabha
   • Replaces the Indian Ports Act of 1908
   • Establishes the Maritime State Development Council (MSDC)
3. 2025-12-25: Key Legislative Reforms
   More details

   UPSC Angle: Key legislative reforms enacted, including Indian Ports Act, 2025.

   Key Facts:

   • Indian Ports Act, 2025 replaces 1908 Act
   • Coastal Shipping Act, 2025
   • Modernised Merchant Shipping Legislation, 2025

Genesis

Trigger

The passage of the Coastal Shipping Bill, 2024 by the Lok Sabha on April 8, 2025, served as the catalyst for the broader maritime overhaul.

Why Now

India's logistics costs remain high (approx. 14-18% of GDP) compared to global peers; the shift to coastal shipping is seen as a 'green' and 'cost-effective' solution to reduce reliance on the over-burdened road (66%) and rail (31%) sectors.

Historical Context

The sector was governed by the Indian Ports Act of 1908, a colonial-era framework that lacked provisions for modern security oversight, digital trade efficiency, and unified state-center coordination.

Key Turning Points

1. [2025-08-13] Parliament passes the tripartite Maritime Bills (Merchant Shipping, Carriage of Goods, and Coastal Shipping).

   It signaled the legislative death of the 1908 Act and introduced foreign vessel regulation and simpler licensing.

   Before: Rigid colonial-era licensing and fragmented port governance. After: Simplified licensing and a target of 230 million tonnes of coastal cargo by 2030.

2. [2025-12-25] Formal enactment and notification of the Indian Ports Act, 2025.

   This finalized the transition, stripping civil courts of jurisdiction in DRC matters and empowering Port Boards.

   Before: Legal framework rooted in 1908. After: Modernized legislation aligned with global standards.

Key Actors and Institutions

Key Institutions

• Maritime State Development Council (MSDC)
• Dispute Resolution Committees (DRCs)
• Ministry of Ports, Shipping and Waterways
• Board of Major Port Authority

Key Concepts

Coastal Shipping Freight Share

The percentage of domestic cargo moved via sea routes rather than land-based transport like roads or railways.

Current Fact: India aims to increase the freight share from the current 5% to significantly higher levels to reduce road/rail reliance (66%/31%).

Major vs. Non-Major Ports

Classification based on administrative control: Major ports are under the Central Government, while non-major (minor) ports fall under State Governments.

Current Fact: The 2025 Act mandates State Governments to establish Dispute Resolution Committees for matters involving ports.

Maritime State Development Council (MSDC)

An apex advisory body for the coordinated development of the maritime sector, now given statutory weight in the 2025 reforms.

Current Fact: The reforms formally establish the MSDC to modernize regulation and improve security oversight.

What Happens Next

Current Status

As of December 25, 2025, the reforms are formally enacted and notified, marking the official replacement of the 1908 Act.

Likely Next

Establishment of State-level Dispute Resolution Committees (DRCs) and the formalization of the Maritime State Development Council's operational guidelines.

Wildcards

Potential pushback from State Governments regarding the central oversight of the Maritime State Development Council or delays in private sector vessel procurement to meet the 230MT target.

Why UPSC Cares

Syllabus Topics

• Infrastructure: Energy, Ports, Roads, Airports, Railways etc.
• Government policies and interventions for development in various sectors

Essay Angles

• Blue Economy: The next frontier for India's $5 trillion ambition
• Decolonizing Indian Law: Beyond symbolic changes to structural reforms
• Sustainable Logistics: Shipping as a green alternative to road transport

Prelims Likely: Yes

Mains Likely: Yes

Trend Signal: rising

Exam Intelligence

Previous Year Question Connections

• Matched ports with their characteristics (e.g., Kamarajar Port as a company). — The 2025 reforms further the corporatization and autonomy trends started with the Major Port Authority Act, 2021, mentioned in this PYQ.
• Administrative control of major vs. minor ports. — This arc adds a new layer—the mandate for State Governments to establish DRCs, changing the jurisdictional dynamics between Center and States.

Prelims Angles

• The Maritime State Development Council (MSDC) is now a statutory/legislative entity under the 2025 reforms.
• Civil courts now lack jurisdiction in matters handled by the newly mandated Dispute Resolution Committees (DRCs).
• Specific freight share targets: Road (66%), Rail (31%), and the goal to increase Coastal (5%) to 230 million tonnes by 2030.

Mains Preparation

Sample Question: Critically analyze how the enactment of the Indian Ports Act 2025 and the Coastal Shipping Act 2025 addresses the structural bottlenecks in India's logistics sector. To what extent will these reforms help in achieving the goals of the Sagarmala Programme?

Answer Structure: Intro: Context of replacing the 1908 Act → Body 1: Legal features (MSDC, DRCs, simplified licensing) → Body 2: Economic impact (reducing 66% road reliance, lowering logistics costs) → Body 3: Challenges (State-Center coordination, infrastructure readiness) → Conclusion: Link to Blue Economy and Sustainable Development Goals.

Essay Topic: The Maritime Renaissance: Charting a Course for India’s Port-Led Prosperity.

Textbook Connections

Key Takeaway

The 2025 maritime reforms represent a decisive shift from colonial-era port administration to a modern, integrated logistics framework aimed at making coastal shipping the backbone of India's trade.

All Events in This Story (3 items)

1. 2025-04-08 [Economy] — Coastal Shipping Bill, 2024 Passed
   The Lok Sabha has passed the Coastal Shipping Bill, 2024, aimed at strengthening the coastal shipping sector. It aims to promote cost-effective and sustainable coastal trade by increasing coastal shipping's freight share from the current 5% to reduce over-reliance on roadways and railways, thereby lowering logistics costs, traffic congestion, and pollution.
   More details

   UPSC Angle: Lok Sabha passes Coastal Shipping Bill, 2024.

   Key Facts:

   • Bill: Coastal Shipping Bill, 2024
   • Aims to promote cost-effective and sustainable coastal trade
   • Aims to increase coastal shipping's freight share from the current 5%
   • Reduce over-reliance on roadways (66%) and railways (31%)
2. 2025-08-13 [Polity & Governance] — Parliament Passes Maritime Bills
   The Parliament passed the Merchant Shipping Bill, 2025, Carriage of Goods by Sea Bill, 2025 & Coastal Shipping Bill, 2025 aiming to modernize India's maritime legal framework by replacing outdated colonial-era laws. The Coastal Shipping Bill, 2025, aims to increase coastal cargo to 230 million tonnes by 2030 with simpler licensing and foreign vessel regulation.
   More details

   UPSC Angle: Parliament passes maritime bills to modernize India's maritime legal framework.

   Key Facts:

   • Replaces the Indian Ports Act, 1908
   • Establishes Maritime State Development Council
   • Mandates State Governments to establish Dispute Resolution Committees (DRCs)
   • No civil court shall have jurisdiction in matters under DRC
   • Fixed by the Board of Major Port Authority or Board of Directors (for ports under Companies Act, 2013) in case of major ports
   • Coastal Shipping Bill, 2025 aims to raise coastal cargo to 230 million tonnes by 2030
   • Indian Ports Bill, 2025 passed in Lok Sabha
   • Replaces the Indian Ports Act of 1908
   • Establishes the Maritime State Development Council (MSDC)
3. 2025-12-25 [Polity & Governance] — Key Legislative Reforms
   Several key legislative reforms were enacted, including the Indian Ports Act, 2025 (replaces 1908 Act), Coastal Shipping Act, 2025, and Modernised Merchant Shipping Legislation, 2025. These reforms aim to modernize regulation, improve security oversight, support trade efficiency, and align with global maritime standards.
   More details

   UPSC Angle: Key legislative reforms enacted, including Indian Ports Act, 2025.

   Key Facts:

   • Indian Ports Act, 2025 replaces 1908 Act
   • Coastal Shipping Act, 2025
   • Modernised Merchant Shipping Legislation, 2025