Paper: GS – III, Subject: Economy, Topic: Economic reforms, Issue: Reforming the Maritime reforms.
Context:
The Indian Ports Bill, 2025, passed in Rajya Sabha, aims to repeal the Indian Ports Act, 1908. It is part of a legislative package including Coastal Shipping Act, 2025, Carriage of Goods by Sea Bill, 2025 and Merchant Shipping Act, 2025. Theobjective is to streamline maritime governance, modernise outdated laws, align with global practices.
Key Highlights:
Progress and Significance:
- Facilitative Framework:
- Enables ease of business, sustainable port development.
- Brings coherence to fragmented maritime governance.
- Global Alignment:
- Attracts foreign investment.
- Aligns with international conventions, modern shipping finance, and offshore operations.
Key Concerns in Maritime Legislation:
Implications:
- Economic:
- Risk of undermining domestic shipping operators.
- Increased compliance cost for small players.
- Political:
- State governments sidelined in planning and port governance.
- Strategic:
- Weakens Indian ownership safeguards.
- Possible dominance of foreign vessels in coastal trade.
Way Forward:
- Balanced Federalism: Ensure cooperative decision-making between Centre and States.
- Judicial Safeguards: Restore role of courts in dispute resolution.
- Clear Ownership Rules: Strengthen Indian ownership requirements, avoid dilution.
- Support Domestic Shipping: Protect cabotage rights for Indian-flagged vessels.
- Targeted Reforms: Regulatory changes must ease business, not burden smaller operators.
Conclusion:
India’s maritime reforms are timely and necessary to modernise outdated laws and align with global standards. A balanced approach ensuring cooperative federalism, judicial oversight, and protection for Indian-flagged vessels will make these reforms both growth-oriented and strategically secure.
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