India’s maritime sector is on the cusp of a transformation. The Coastal Shipping Act, 2025, isn’t just another policy tweak—it’s a bold reimagining of how the country leverages its 11,000-kilometre coastline. For decades, coastal shipping has been the overlooked cousin of road, rail, and air transport. Now, it’s being elevated to the fifth official mode of transport, a move that could reshape India’s logistics landscape and economic growth.
The Act’s ambition is clear: boost coastal cargo traffic to 230 million metric tonnes by 2030. That’s not just a target—it’s a mandate to modernise, digitise, and secure India’s maritime future. And it’s not happening in isolation. This law is the missing piece in the puzzle of initiatives like Sagarmala and Maritime Vision 2030, ensuring that ports, shipyards, and coastal infrastructure develop in sync with a unified national strategy.
**Breaking Down Barriers, Building Competitiveness**
One of the Act’s most significant reforms is the abolition of licensing requirements for Indian vessels in coastal trade. Under the old Merchant Shipping Act, 1958, securing a licence was a bureaucratic nightmare—delayed, cumbersome, and costly. The new law scraps that red tape, slashing turnaround times and operational costs. For Indian operators, this is a game-changer. It levels the playing field, encourages fleet expansion, and reduces reliance on foreign-flagged vessels.
But don’t mistake this for open borders. Foreign vessels still need licences, but now the rules are clearer, more transparent, and security-conscious. The Directorate General of Shipping (DGS) is at the helm, modernised and empowered to issue licences, enforce safety norms, and ensure environmental compliance. This isn’t just about cutting red tape—it’s about building a smarter, more competitive coastal shipping ecosystem.
**Data-Driven Security and Efficiency**
Here’s where things get interesting. The Act introduces mandatory digital reporting for all coastal vessels—Indian and foreign. Ships must share real-time data on routes, cargo, and crew through a single-window digital portal. This isn’t just about paperwork; it’s about building a digital backbone for maritime intelligence.
Imagine a system where authorities can detect suspicious movements, illegal trade, or unauthorised operations in real time. Where big-data analytics and AI-driven risk scoring provide actionable intelligence to the Indian Navy, Coast Guard, and Marine Police. This is the future the Act envisions—a seamless flow of information that strengthens coastal security and regulatory oversight.
**Challenges on the Horizon**
But let’s not get carried away. The Act is a landmark, but its success hinges on execution. Bureaucratic delays, inconsistent enforcement across states, and infrastructure gaps could derail progress. Fleet modernisation, skill development, and cost competitiveness against foreign charters are critical hurdles. And let’s not forget the environmental and social dimensions—coastal development must align with India’s Green Ports framework and support Net-Zero Shipping goals.
**A Strategic Leap Forward**
The Coastal Shipping Act, 2025, is more than a policy—it’s a strategic enabler. It’s about lowering freight costs, fostering domestic shipbuilding, and enhancing safety and environmental standards. It’s about building smart ports, automated cargo systems, and integrated coastal command centres. And it’s about ensuring that economic progress and national security advance hand in hand.
This is India’s moment to harness its maritime potential. The Act provides the framework, but the real work begins now. The stakes are high, but so are the rewards—a maritime India that’s efficient, secure, and ready to lead.