India has formally recognised coastal shipping as its fifth mode of transport under the new Coastal Shipping Act 2025, aiming to integrate it into the national multimodal framework and reduce logistics costs, reports New Delhi's Sunday Guardian.

The Act streamlines licensing, modernizes oversight, and promotes domestic capacity-building. It aligns with flagship initiatives such as Sagarmala and Maritime Vision 2030 to support port infrastructure, shipbuilding, and coastal industrial clusters.

Section 3 abolishes licensing for Indian vessels in coasting trade, replacing outdated rules under the Merchant Shipping Act 1958. Foreign vessels remain subject to standardized licensing, ensuring regulatory balance and national-security safeguards.

Section 4 introduces transparent criteria for foreign vessel licensing, requiring compliance with safety and environmental standards. Oversight will be managed by the Directorate General of Shipping (DGS), now digitally modernized for integrated enforcement.

Section 6 mandates voyage reporting for all coastal vessels via a single-window digital portal. This enhances maritime domain awareness and supports predictive policing, environmental monitoring, and coastal security coordination.

Implementation challenges include timely rule-making, consistent enforcement across states, infrastructure gaps, and fleet modernization. The Act also calls for training and certification to raise operational standards and support domestic shipbuilding.

Environmental stewardship and community inclusion are key. Coastal development must align with India's Green Ports framework and Net-Zero Shipping goals, with fishing communities involved in planning and monitoring.

The Act strengthens India's coastal-security architecture through expanded surveillance networks, AI-enabled monitoring, and multi-agency exercises. Integration with the Navy-led IMAC will create a unified coastal intelligence grid.

By simplifying regulations and digitizing processes, the Act will lower freight costs, expand cargo movement, and foster smart port development. It positions India as a resilient and globally competitive maritime power.