India’s Maritime Reforms: Initiatives & Challenges

India’s recent maritime legislative overhaul modernises governance and boosts efficiency but raises concerns on federalism, ownership sovereignty, and regulatory overreach.

Legislative Overhaul in Maritime Governance

Indian Ports Bill 2025: Creates the Maritime State Development Council to coordinate port policies.
Merchant Shipping Act 2025: Permit partial foreign ownership and mandate registration of all vessels.
- Recognises Bareboat Charter-Cum-Demise (BBCD) for leasing with eventual ownership transfer.
Coastal Shipping Act 2025: Mandate National Strategic Plan to clarify cabotage and vessel licensing.
Carriage of Goods by Sea Bill: Adopts Hague–Visby Rules to regulate the liability for goods carriage.

Other Contemporary Initiatives

One Nation One Port: Provides a single-window system to standardise the documentation process.
Green Tug Transition Program: Transition harbour tugs from fossil fuels to sustainable alternatives.
Harit Sagar Guidelines: Mandate zero-carbon targets to ensure sustainable port operations.
Sagarmala 2.0: Allocate ₹40,000 crore to expand shipbuilding, recycling, and port modernisation.
Jal Marg Vikas: Develop NW-1 Haldia-Varanasi waterway to strengthen overall multimodal logistics.

Key Gains from the Maritime Transformation

Turnaround Efficiency: Average port turnaround cut to 48.06 hours, improving efficiency by ~49%.
Inland Waterways: Freight rose eightfold from 18.1 to 145.5 MMT, easing road congestion.
Capacity Expansion: Sagarmala’s Project Unnati unlocks ~100 MMT capacity across major ports.
Port Investment: 839 projects worth ₹5.79 lakh crore identified, leveraging PPPs for expansion.
Digitalisation: ONOP standardised documentation, reducing container & bulk cargo paperwork ~30%.

Emerging Issues in India’s Maritime Landscape

Centralisation: MSDC centralises policymaking, weakening cooperative federalism in port governance.
Compliance: Vague regulatory rules impose unpredictable compliance burdens on smaller operators.
Clause 17: Indian Ports Bill excludes civil courts, weakening independent oversight of port disputes.
Ownership Rules: Undefined ownership thresholds risk foreign control of Indian-flagged vessels.
Dependence: India handles 75% of transhipment cargo abroad, incurring ~$200 million annual loss.

Way Forward

Ownership: Legislate foreign equity caps in Indian-flagged vessels to protect ownership sovereignty.
Oversight: Reinstate civil court jurisdiction over port disputes to ensure impartial adjudication.
Federal Balance: Empower state maritime boards with independent fiscal planning & tariff authority.
Regulatory Ease: Simplify maritime compliance procedures to reduce burdens on small operators.
Transshipment Hub: Accelerate Vizhinjam & Vadhavan development as regional transshipment hubs.

India’s maritime reforms, guided by SAGAR and the Maritime Security Strategy, hold the potential to position the nation as the Preferred Security Partner in its extended neighbourhood. With balanced governance, sustainability, and global competitiveness, India can shape a resilient maritime future.

Reference: The Hindu | PMFIAS: Recent Maritime Initiatives

PMF IAS Pathfinder for Mains – Question 336

Q. Assess the impact of India’s maritime legislative reforms on governance, federal balance, and ownership, and suggest comprehensive maritime reforms. (150 Words) (10 Marks)

Approach

Introduction: Write a brief introduction about maritime reforms by mentioning the facts.
Body: Write the impact of India’s maritime legislative reforms and suggest comprehensive maritime reforms.
Conclusion: Write a comprehensive conclusion by mentioning government goals.