Lok Sabha Passes Maritime Bill to Boost Ease of Doing Business

The Lok Sabha has passed the Carriage of Goods by Sea Bill, 2024, marking a significant step toward modernizing India's maritime legal framework and enhancing the Ease of Doing Business (EODB) in the shipping sector. The bill, introduced by Union Minister of Ports, Shipping & Waterways Sarbananda Sonowal, replaces the outdated Carriage of Goods by Sea Act, 1925, aligning the legal framework with contemporary commercial realities.

The colonial-era 1925 Act was based on the Hague Rules, which contained complex language and lacked adaptability to modern shipping practices. The new bill streamlines regulations, reduces ambiguities, and enhances legal clarity for exporters, importers, and shipping professionals.

Sarbananda Sonowal highlighted the bill’s importance, stating, “The passage of the Carriage of Goods by Sea Bill in the Lok Sabha is a crucial step towards realizing PM Narendra Modiji’s vision of updating and modernizing India’s legal framework. By removing colonial-era constraints, we are making maritime laws more efficient, relevant, and accessible.”

Indian Ports Bill, 2025 Introduced

In addition to the Carriage of Goods by Sea Bill, Sonowal also introduced the Indian Ports Bill, 2025, aimed at promoting integrated port development and ensuring optimal utilization of India's vast coastline. The bill proposes the formation of State Maritime Boards to manage ports other than major ports and establishes the Maritime State Development Council for structured port sector growth.

Speaking on the Indian Ports Bill, Sonowal said, “This transformative legislation consolidates laws, strengthens port governance, and fosters improved ease of doing business. With a strong focus on safety, security, and sustainability, the bill will enhance India’s global competitiveness in the maritime sector.”

Key Features of the Bills

Modernization & Decolonization: The Carriage of Goods by Sea Bill replaces archaic laws with a forward-looking legal structure.

Transparency & Accountability: The bill ensures parliamentary oversight of executive notifications and empowers the government to swiftly adapt to evolving international maritime conventions.

Simplified Legal Framework: The Carriage of Goods by Sea Bill simplifies legal language and aligns regulations with modern drafting practices to minimize litigation risks.

Port Sector Development: The Indian Ports Bill addresses critical areas such as pollution control, disaster management, navigation, security, and compliance with international maritime conventions.

Dispute Resolution: The bill introduces adjudicatory mechanisms to resolve port-related disputes efficiently, improving business confidence in India’s shipping industry.