Merchant Shipping Act, 2025: Steering India into a smarter maritime future

By Takayuki Kano, CEO, NICDC Logistics Data Services Ltd (NLDSL)

In logistics, outdated rules often become invisible roadblocks. India’s maritime sector has lived with one for decades: the Merchant Shipping Act of 1958. For its time, it worked. But as ships grew larger, ports busier and trade volumes surged, the law began to look like a relic. It spoke to an era when container traffic was modest and digital systems did not exist.

By FY24, India’s ports were handling nearly 1,900 million tons of cargo, compared with just over 1,200 million tons a decade earlier. Exporters were reaching new markets, and programs like Sagarmala were positioning India as a global maritime hub. Yet the governing law of the sea had hardly changed. That is what the Merchant Shipping Act, 2025 (MSA 2025) sets out to fix.

Why reform was needed

For almost 70 years, the Merchant Shipping Act of 1958 steered India’s maritime sector. Yet in a world of growing trade volumes, increasingly demanding environmental criteria and digitised shipping technologies, it showed its age.

The year 2025 is considered a pivot point. By amending its maritime code, India is modernising local laws while simultaneously aligning with international conventions such as SOLAS (Safety of Life at Sea), MARPOL (Marine Pollution), and the Ballast Water Management Convention. Most importantly, it indicates a readiness for India to take its own protagonist role towards achieving acceptable standards on a global scale governing shipping regulation throughout the world.

What the new Act brings

The changes are sweeping. Revising the outdated Merchant Shipping Act, 1958, which had 561 sections, the new Bill offers a streamlined framework of 16 parts and 325 clauses, simpler, clearer and closer to current realities.

Safety takes center stage, with stronger liability norms, clearer rules for marine casualties and better welfare provisions for Indian seafarers, including those on foreign vessels. Environmental compliance is upgraded too, covering waste, pollution and ballast water treatment. Just as important, governance finally enters the digital age. The Act allows e-registration of vessels, real-time tracking and tighter integration with national logistics data systems.

What it will mean in practice 

For both operators and owners, all of this translates into less or the same level of safety and compliance standards as the current standard. There is always a cost to change, but enhanced predictability and clarity can speak to the cost benefit. Ports and other logistics-driven services will be subjected to less wait times for clearance and reduced supply chain delays and issues. Exporters and MSMEs will also see benefits in terms of better shipment predictability and less delays, due to the introduction of digital tools potentially added to their supply chain process. Lastly, for governments and regulatory authorities, in their maritime sectors it represents a stronger enforceable framework to lend additional credibility to their roles on the international maritime stage.

Connected to larger maritime vision 

MSA 2025 is aligned with other flagship programs like Sagarmala and the Blue Economy Mission, helping to improve coastal trade, sustainable fisheries and offshore energy, and promoting India’s footprint as a greener maritime nation. 

So, this Act is not just about legal housekeeping. It is about making sure India continues to be a competitive, responsible maritime center into the future.

Anticipated challenges 

This type of reform will not be easy. Smaller ports and regional operators may find it difficult to comply with standards and change to digital systems. MSMEs will need to be clear on their obligations and supported in their adjustments. Regulators will need to enforce rules and requirements without disincentivising the sector. Finding the balance between regulating and being competitive will be tricky. 

Business perspective 

The Act allows for technologies that will be later developed. Assuming a digital underpinning is already in place, digital tools like AI, blockchain and predictive analytics, among others, can be added to provide for greater transparency and resiliency in shipping. As India aligns with global maritime standards, cross-border trade will be quicker, cleaner and safer.

A fresh direction for the maritime sector 

In conclusion, the Merchant Shipping Act, 2025 is much more than an Act. It is a statement of purpose. It says that India’s maritime future will not solely be determined by bigger vessels and more modern ports, but also on data, safety, sustainability and smarter governance. 

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