The Lok Sabha on 6 August 2025 passed the Merchant Shipping Bill, 2025, marking a decisive step in replacing the Merchant Shipping Act, 1958 — a statute that had governed Indian maritime operations for over six decades. The Bill, introduced by the Ministry of Ports, Shipping and Waterways, consolidates India's maritime regulatory framework into a streamlined structure of 16 parts and 325 clauses, down from 561 sections in the existing Act.
Background
The Merchant Shipping Act, 1958, enacted during a period of limited Indian shipping capacity, had undergone numerous piecemeal amendments but remained structurally anchored to mid-twentieth century maritime practices. India's merchant fleet and its role in global shipping have expanded significantly since independence, and the regulatory framework had increasingly fallen out of alignment with contemporary international maritime conventions.
The Bill was first introduced as the Merchant Shipping Bill, 2024, and was examined through parliamentary processes before being taken up during the Monsoon Session 2025. The Ministry of Ports, Shipping and Waterways simultaneously advanced four other maritime-related Bills during the same session as part of a comprehensive overhaul of India's maritime legal architecture.
Key Provisions
The Merchant Shipping Bill, 2025 introduces several structural changes:
Adoption of international conventions: The Bill comprehensively incorporates India's obligations under major international maritime instruments including SOLAS (Safety of Life at Sea) and MARPOL (Prevention of Pollution from Ships), which the 1958 Act addressed inadequately.
Simplified compliance framework: The number of operative sections is reduced from 561 to 325 clauses, eliminating redundant provisions and consolidating overlapping regulatory requirements to improve ease of doing business.
Enhanced safety standards: New provisions strengthen requirements for navigation safety, crew welfare, and emergency preparedness including salvage operations, replacing the fragmented safety regime under the existing Act.
Environmental protection: The Bill introduces dedicated provisions for marine environmental safeguards, including pollution prevention measures and response protocols that align with India's commitments under international environmental conventions.
Indian flag tonnage: Provisions are included to incentivise registration of vessels under the Indian flag, addressing the long-standing concern that a significant proportion of India's cargo is carried on foreign-flagged vessels.
Implications for Practitioners
The transition from the 1958 Act to the new legislation will require maritime lawyers and shipping companies to systematically map existing compliance structures to the reorganised framework. Given that the clause numbering and part structure have been entirely overhauled, contractual references to specific sections of the 1958 Act in existing charterparties, insurance policies, and mortgage documents will need updating.
Practitioners advising shipowners and operators should note that the enhanced environmental compliance provisions may require operational changes, particularly for vessels engaged in Indian coastal waters. The alignment with MARPOL standards suggests stricter discharge and emission norms that could affect older vessels in Indian fleets.
The simultaneous passage of the Coastal Shipping Bill, Carriage of Goods by Sea Bill, and Bills of Lading Bill during the same session means that the entire legislative foundation of Indian maritime commerce is being reset. Firms with maritime practices should prepare comprehensive transition guides for clients well before the appointed dates for enforcement.