The Coastal Shipping Act, 2025 consolidates and amends the law relating to coastal shipping in India. The Act seeks to strengthen national security, promote domestic participation in coastal trade, and ensure a strong Indian-owned coastal fleet. It replaces older fragmented provisions and provides a single framework for regulating coasting trade.

The Act establishes clear rules for licensing, registration, and operation of coastal vessels. Only Indian citizens or Indian-owned entities can operate in coastal trade, ensuring strategic control. It empowers the Central Government (administered through the Ministry of Ports, Shipping and Waterways) to make rules, issue permits, and regulate coastal cargo movement. The Director-General of Shipping will act as the key implementing authority.

The legislation also introduces compliance obligations on operators, safety and security standards for vessels, and penalties for violations. By consolidating provisions, it removes ambiguities and encourages domestic shipbuilding and participation in coastal transport, reducing dependence on foreign vessels.