India’s Maritime Leap: The Carriage of Goods by Sea Bill, 2025 Explained in Depth
In August 2025, India took a bold and long-awaited step to modernise its maritime trade laws by passing the Carriage of Goods by Sea Bill, 2025. This bill replaces the nearly century-old Carriage of Goods by Sea Act, 1925, a law that was drafted during the British colonial era and had remained largely unchanged since Independence.
This development is not just about updating an old law — it is about aligning India’s maritime legal framework with the needs of a modern economy, integrating global best practices, and strengthening India’s position in the international shipping industry.
Historical Context: Why the Old Law Had to Go
India’s previous maritime cargo law — the Carriage of Goods by Sea Act, 1925 — was based on the Hague Rules of 1924. These rules were developed during a time when sea cargo mainly consisted of bulk goods loaded manually, and ships didn’t carry standardised containers or operate in a digital ecosystem.
Major limitations of the 1925 Act:
- No mention of containerisation, which now dominates global shipping.
- Outdated liability clauses that did not reflect modern logistics.
- No clarity on issues such as electronic documentation, tracking, or multi-modal transport.
- Based on colonial-era assumptions, with no reflection of India’s current trade environment.
Overview: What Is the Carriage of Goods by Sea Bill, 2025?
The Carriage of Goods by Sea Bill, 2025 provides a comprehensive legal framework to govern contracts related to the carriage of goods by sea. It aims to regulate the rights and obligations of shipowners, shippers (cargo owners), and consignees under a bill of lading or other shipping contracts.
Legislative Journey:
- Introduced in Lok Sabha: March 2025
- Passed by Lok Sabha: March 28, 2025
- Passed by Rajya Sabha: August 6, 2025
- Repeals: Carriage of Goods by Sea Act, 1925
The bill is based on the Hague-Visby Rules of 1968 — a globally accepted set of maritime standards — ensuring that India’s shipping laws are now in sync with international practices.
Key Features of the 2025 Bill
1.Based on Hague-Visby Rules
The new law adopts the Hague-Visby Rules, which are modern amendments to the original Hague Rules. These rules are widely accepted by major shipping nations and offer:
- Clear liability rules for carriers.
- Updated limits of liability based on weight and value of goods.
- Protection for both carriers and cargo owners in case of disputes.
2. Modern Definition of Bills of Lading
- Updates the legal status of Bills of Lading, a crucial document in sea cargo.
- Recognizes both negotiable and non-negotiable bills.
- Clarifies rights of consignees and endorsees.
3. Containerized Cargo Recognized
Recognizes containerized shipments, which are now the backbone of global maritime trade.
4. Liability and Exemptions
Defines when the carrier (shipowner) is responsible for damage or loss of goods. Exemptions include:
- Natural disasters
- War or piracy
- Negligence by shipper in packaging
- Perils of the sea
5. Time Limits for Claims
Claims must generally be made within 1 year of the delivery date or expected delivery date.
6. Prepares for Digitalization
Sets the groundwork for recognizing electronic bills of lading in future amendments.
Why Is This Bill Important?
1. Replacing Colonial Legacies
Eliminates outdated laws drafted under British rule and replaces them with legislation suited to modern India’s needs.
2. Boosts India’s Global Image
Aligns Indian law with global maritime standards — a big step toward trade credibility and investor trust.
3. Strengthens Logistics and Exports
Legal clarity improves risk management, cargo insurance, and encourages export-led growth.
4. Supports Port-Led Development
Fits well within India’s Maritime India Vision 2030 — a plan to make Indian ports global shipping hubs.
5. Attracts Foreign Investment
Foreign shipping companies prefer dealing with jurisdictions that follow modern, stable maritime laws.
Comparison With Other Maritime Frameworks
| Country | Legal Framework | Based On |
|---|---|---|
| UK | Carriage of Goods by Sea Act | Hague-Visby Rules |
| USA | COGSA 1936 | Hague Rules |
| India (Old) | CGS Act, 1925 | Hague Rules |
| India (New) | CGS Bill, 2025 | Hague-Visby Rules |
Implications for UPSC & Law Aspirants
- Case study on legislative reform and ease of doing business.
- Relevant for GS Paper 2, GS Paper 3, and Essay writing.
- Demonstrates India’s transition from colonial frameworks to modern governance.
Real-World Use Case Example
An exporter from Gujarat ships garments to Europe. During the voyage, the cargo is damaged due to seawater leakage. Under the old law, the dispute might take years to resolve due to unclear clauses. Under the 2025 law, liability and claim timelines are clear, saving time and legal expenses.
Industry Reactions
Most industry associations have welcomed the bill. However, some stakeholders have called for:
- Inclusion of electronic documentation.
- Integration with smart contracts and blockchain.
- Wider training for small exporters and customs agents.
Also Read Space Race 2.0: https://www.thebriefdesk.com/2025/08/space-race-20-new-global-battle-for.html
Way Forward
- Legislate and implement electronic bills of lading.
- Educate logistics providers, exporters, and legal professionals.
- Link maritime laws with India’s multi-modal transport policies.
- Create fast-track dispute resolution for maritime cases.
Conclusion
The Carriage of Goods by Sea Bill, 2025 is more than a legal update — it is a foundational shift in India’s approach to trade, governance, and global integration. By embracing international norms, India is well-positioned to become a leader in global maritime commerce.
With strong implementation, this bill can anchor India’s economic future firmly to global waters — opening up safer, smarter, and swifter shipping routes for generations to come.
