Parliament Passes Carriage of Goods by Sea Bill, 2025 to Modernize Maritime Trade Laws

The Parliament of India has passed the Carriage of Goods by Sea Bill, 2025, marking a major reform in India’s maritime trade laws. The Rajya Sabha approved the Bill today, following its earlier passage in the Lok Sabha, paving the way to replace the nearly century-old Indian Carriage of Goods by Sea Act, 1925.

Key Features of the New Bill

The Bill sets out the responsibilities, liabilities, rights, and immunities for goods carried from Indian ports, ensuring greater clarity in shipping agreements. It empowers the central government to,

• Issue directions for implementing the Bill’s provisions.
• Amend the schedule specifying rules applicable to bills of lading—the crucial shipping document that lists the type, quantity, condition, and destination of goods.

The updated law aligns India’s shipping regulations with modern international maritime practices, simplifying procedures for exporters, importers, and shipping companies.

Promoting Ease of Doing Business

• Bill would simplify and rationalize maritime trade laws to boost ease of doing business.
• “The Carriage of Goods by Sea Bill, 2025 is a progressive step that replaces outdated provisions with a modern legal framework suitable for today’s trade environment,”.

Economic Impact and Sector Growth

India’s remarkable progress in the maritime sector over the past decade under Prime Minister Narendra Modi. Noted that the cargo handling capacity of major ports has more than doubled—from 819 million tonnes in 2014-15 to over 1,600 million tonnes in 2024. Reforms like this will strengthen India’s shipping industry, helping the nation move closer to becoming the world’s third-largest economy. The economic growth driven by the shipping sector, noting that India has 12 major ports and over 100 smaller ports, which together play a critical role in trade.

Why This Matters

The repeal of the 1925 law and its replacement with the 2025 Bill reflects India’s commitment to updating trade laws in line with global best practices. The move is expected to,

• Reduce disputes over shipping contracts.
• Enhance legal certainty for domestic and international trade.
• Attract greater investment into India’s maritime infrastructure.