In April 2025, India made a long overdue correction to its maritime calculus. An official notification revised the country's coastline length to 11,098 kms - a 48% increase from the 1970s figure of 7,516 kms. This granular update reflects a broader overhaul of India's maritime strategy as it positions itself to become a future-ready maritime power.
India already supplies 12% of the world's seafarers, and enjoys a strategic location, yet its core capacities remain modest. India holds only 1.2% of global shipping capacity (by tonnage), and fewer than that fly under an Indian flag. Domestic shipbuilding is negligible with just a 0.07% market share. Indian ports handle just about 2.5% of global container moves. The net effect is that 80% of India's sea freight expenditure is on foreign shipping lines, with shipping related expenses second only to the oil import bill.
But things are starting to change. The passage of five maritime related bills this year by the Modi government, with four in the previous session of parliament, point to the scale of transformation. These replace several outdated British-era laws that no longer matched contemporary needs. For example, the Indian Bills of Lading Act, 1856, which dates back more than 168 years, will be replaced by the Bills of Lading Bill, 2024. It reduces litigation risks, streamlines business processes, and provides legal clarity to stakeholders.
The Merchant Shipping Bill, 2025, and the Carriage of Goods by Sea Bill, 2025, modernise India's maritime law, recognising Indian-controlled tonnage, mandating compulsory insurance, strengthening seafarer welfare, and bringing transparency to port charges. They also seek to reduce compliance and boost investment, and bring India's maritime regulations in line with global norms.
Efforts have also been made to push for a complete digitalisation of the shipping eco-system to connect ports with real‑time data and analytics, cut turnaround times, and end logistical fragmentation. The Coastal Shipping Bill, 2024 thus, includes creating a public National Database of Coastal Shipping to improve coordination.
Institutional frameworks are also being put in place to leverage these reforms. Under the Indian Ports Bill, 2025, a new Centre-State coordination council has been created for integrated planning across transport modes. This is in addition to the existing Sagarmala initiative, wherein 279 port-connectivity projects (rail, road, pipelines etc.) have already been identified.
However, the entire maritime ecosystem is seeing rapid reform. The newly commissioned Vizhinjam International Seaport presents an excellent representation of what India can do to change the odds. Capable of handling ultra-large vessel handling and equipped with an AI-powered traffic system, it is India's first deepwater port & transshipment hub. It will help capture international traffic currently routed through other countries, and large container-ships, popularly referred to as motherships, now need not take expensive detours elsewhere. Over time, that means lower per‑box costs, fewer days lost, and better reliability for exporters.
This is not an isolated investment; several infrastructure projects are underway to bolster domestic shipbuilding and tonnage capacity under the Maritime India Vision 2030 and Vision 2047 roadmaps, which aim to place India among the top 10 shipbuilders by 2030, and top five by 2047. The government has also rolled out a Rs 25,000 crore Maritime Development Fund for shipbuilding and repair facilities, along with tax incentives, import duty exemptions and plans to build eight ship-building clusters.
Global disruption and arbitrary sanctions have made shipping a high-risk business. The government has been looking at advancing a domestic Protection and Indemnity (P&I) insurance entity (provisionally termed the "India Club"). While focused initially on coastal and inland fleets, this will strengthen sovereign maritime insurance capacity and provide a financial firewall to Indian vessels plying strategic trade routes. The added continuity and financial security will strengthen India's hand during any moments of global disruption or potential sanctions.
While the effects of the legislative changes and other actions will be felt, early gains are visible. Shipping efficiency has improved markedly. Governance reforms under Sagarmala, enhanced connectivity through PM Gati Shakti, and digital systems have reduced port turnaround times by approximately 30% over the last decade. At major ports, overall vessel turnaround time fell from 53 hours in FY2022 to 48 hours in FY2024. Berth-day output has increased by 18%, which points to increased efficiency in capacity utilisation. Two Indian ports are now in the global top 30.
Challenges remain. Fleet competitiveness needs financing, insurance and fiscal levers. Coastal transshipment will need sustained choices on incentives and licensing across the board, as well as specific accommodations within customs/taxation rules.
However, the recent initiatives set a floor for maritime governance and a ceiling for ambition as compared to previous governments. The rest must be done through project execution, regulatory clarity across Ministries, and a sharper nudge to domestic shipbuilding and repair.
India has the coastline, the location, and the people. Should that be coupled with the right scale and discipline, India may reclaim its maritime glory of ancient times.
(The writer is a graduate from the Harvard Kennedy School and a public policy consultant)
Disclaimer: These are the personal opinions of the author
