Charting a New Course: Transforming India’s Maritime Future

Transforming India’s Maritime Future.

India, blessed with over 7,500 kilometres of coastline, has always depended on its seas for trade and economic growth. Today, about 95% of India’s trade happens through its ports, highlighting the importance of the maritime sector. Despite this, the sector is governed by outdated laws such as the Merchant Shipping Act of 1958 and the Coasting Vessels Act of 1838, which are no longer sufficient to address the complexities of modern shipping. Recognising this, the government has introduced the Merchant Shipping Bill, 2024, and the Coastal Shipping Bill, 2024, aimed at transforming the industry. These reforms promise to modernise India’s shipping sector, improve safety, and align its practices with global standards of sustainability and efficiency.

Why India Needs New Shipping Laws

India’s shipping laws were created at a time when the industry was far simpler. However, modern ships, advanced technologies, and global trade agreements have significantly changed the landscape. The old laws fail to address many critical challenges. For instance, offshore vessels, like those used in oil drilling, are not properly governed, creating safety and operational risks. Similarly, outdated rules make it difficult for businesses to compete in today’s globalised shipping industry.

Another major concern is the welfare of Indian seafarers. Indian sailors make up a large portion of the global maritime workforce, but current laws do not adequately protect those working on foreign-flagged ships. Environmental issues also demand urgent attention. Shipping significantly contributes to marine pollution, but older laws do not provide adequate measures to address this problem. Additionally, there are over 160 private maritime training institutes in India, many of which operate without proper regulation, affecting the quality of education and opportunities for students.

The new bills aim to solve these issues by ensuring better regulations, improving safety, protecting the environment, and supporting the welfare of seafarers. By modernising the maritime sector, India hopes to align its practices with international standards, paving the way for a sustainable and prosperous future.

Key Features of the Merchant Shipping Bill, 2024

The Merchant Shipping Bill, 2024 brings several key reforms to modernise India’s maritime framework. One of the most significant changes is simplifying ship registration. Previously, only companies fully owned by Indian citizens could register ships under the Indian flag. Now, the ownership threshold has been reduced to 51%, allowing Non-Resident Indians (NRIs), Overseas Citizens of India (OCIs), and Limited Liability Partnerships (LLPs) to register ships in India. This change is expected to attract foreign investment, making the Indian shipping industry globally competitive. Besides, temporary registration is now allowed for ships heading for recycling, which will benefit ship recycling hubs like Alang.

Another critical feature is the broader definition of vessels. The bill now includes various crafts such as submersibles, drones, and semi-submersibles, ensuring that all types of vessels are regulated and monitored for safety. The bill also emphasises reducing marine pollution by aligning with global standards like the International Convention for the Prevention of Pollution from Ships (MARPOL). Measures such as banning single-use plastics and enforcing the use of cleaner fuels will significantly reduce the environmental impact of shipping.

Seafarer welfare is another priority. The bill ensures that Indian sailors working on foreign-flagged ships receive the same protections as those on Indian-flagged vessels. This includes adherence to the Maritime Labour Convention (MLC) for better working conditions and safety. Additionally, the bill regulates maritime training institutes, introducing clear rules to ensure quality and eliminate unauthorised institutions.

Key Features of the Coastal Shipping Bill, 2024

The Coastal Shipping Bill, 2024 focuses on maximising the use of India’s coastal waters. Licensing and permissions for coastal vessels have been simplified, making operations more efficient. The bill integrates coastal shipping with inland waterways, creating a seamless network for transporting goods and passengers.

The bill also encourages the use of Indian-built ships by offering incentives, boosting the country’s shipbuilding and repair industries and creating more job opportunities. Like the Merchant Shipping Bill, this legislation emphasises environmental sustainability, promoting green practices such as using cleaner fuels and adopting technologies to reduce emissions. Moreover, it supports the growth of coastal tourism by facilitating passenger services like cruises and sightseeing tours, which will help diversify the economy and create more employment in coastal areas.

How These Reforms Will Benefit India

The new maritime laws bring numerous benefits to India. Economic growth is one of the most significant outcomes. By simplifying processes and attracting both domestic and foreign investment, these laws will boost the ship recycling and shipbuilding industries, creating jobs and strengthening the economy.

Safer shipping is another major advantage. The new laws ensure better safety standards by regulating all types of vessels, including offshore crafts and smaller boats. Enhanced safety measures will also improve maritime security along India’s vast coastline, making it better equipped to handle potential threats. Environmentally, these reforms align with global conventions, promoting cleaner practices and reducing the environmental impact of shipping. Measures such as banning single-use plastics and enforcing cleaner fuels will preserve marine ecosystems.

The laws also aim to improve the lives of Indian seafarers. Whether working on Indian or foreign-flagged ships, they will now receive better protections and improved working conditions, enhancing their quality of life and job satisfaction. Furthermore, regulating maritime training institutes will ensure that students receive high-quality education, preparing them for global opportunities while eliminating fraudulent institutions.

Challenges and Implementation

While the new laws are promising, their implementation poses several challenges. Transitioning from outdated systems to modern frameworks requires extensive training for officials and building capacity across the sector. Balancing the interests of foreign investors with the needs of domestic businesses is another significant challenge. Additionally, modernising ports, vessels, and infrastructure demands substantial financial resources, which could strain smaller operators.

Addressing these challenges will require strong government support, collaboration with industry stakeholders, and careful planning to ensure smooth and effective implementation.

Strategic Importance of Shipping for India

India’s strategic location makes it a vital player in global trade. The new maritime laws will allow the country to leverage this advantage by boosting trade, attracting investment, and enhancing regional connectivity. Coastal shipping and integrated inland waterways will reduce logistics costs, easing the burden on road and rail transport and cutting delivery times.

Stronger regional trade will result from improved coastal operations, fostering cooperation with neighbouring countries. By adopting sustainable practices such as green technologies, India can lead in eco-friendly maritime operations, setting an example for other nations. This approach not only preserves marine ecosystems but also positions India as a global leader in sustainable shipping.

Conclusion

subscribe to our Youtube Channel for more Valuable Content – TheStudyias

Download the App to Subscribe to our Courses – Thestudyias

The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH