India's Maritime Transformation: Reclaiming Sea Power Through Strategic Reforms and Infrastructure Development

In April 2025, India implemented a significant update to its maritime measurements, officially revising its coastline length to 11,098 kilometers—a substantial 48% increase from the previously recognized 7,516 kilometers established in the 1970s. This recalculation symbolizes India's broader strategic shift toward establishing itself as a formidable maritime power ready for future challenges.

Despite supplying 12% of the world's seafarers and possessing a strategic geographic position, India's maritime capabilities remain underdeveloped. The country holds merely 1.2% of global shipping capacity by tonnage, with even fewer vessels sailing under the Indian flag. Domestic shipbuilding remains minimal at just 0.07% market share globally. Indian ports process only about 2.5% of worldwide container movements. Consequently, 80% of India's sea freight expenditure flows to foreign shipping companies, making shipping-related costs second only to oil imports in national expenditure.

The tide is beginning to turn, however. The Modi government's passage of five maritime-related bills this year, following four in the previous parliamentary session, signals a comprehensive transformation. These new legislations replace outdated British colonial-era laws that had become inadequate for modern requirements. For instance, the 168-year-old Indian Bills of Lading Act of 1856 will be superseded by the Bills of Lading Bill, 2024, which reduces litigation risks, streamlines commercial processes, and provides stakeholders with much-needed legal clarity.

The Merchant Shipping Bill, 2025, and the Carriage of Goods by Sea Bill, 2025, modernize India's maritime legal framework by recognizing Indian-controlled tonnage, requiring mandatory insurance, enhancing seafarer welfare, and bringing transparency to port charges. These reforms aim to reduce compliance burdens, stimulate investment, and align India's maritime regulations with international standards.

Efforts are also underway to fully digitalize the shipping ecosystem, connecting ports through real-time data analytics, reducing vessel turnaround times, and addressing logistical fragmentation. The Coastal Shipping Bill, 2024 includes provisions for creating a public National Database of Coastal Shipping to enhance coordination throughout the sector.

New institutional frameworks are being established to maximize these reforms. Under the Indian Ports Bill, 2025, a Center-State coordination council will facilitate integrated planning across various transport modes. This complements the existing Sagarmala initiative, which has already identified 279 port-connectivity projects spanning rail, road, and pipeline infrastructure.

The recently commissioned Vizhinjam International Seaport exemplifies India's maritime transformation potential. As India's first deepwater port and transshipment hub, it features AI-powered traffic management and can accommodate ultra-large vessels. This facility will capture international traffic previously routed through other countries, eliminating expensive detours for large container ships. The long-term benefits include lower per-container costs, reduced transit times, and improved reliability for exporters.

Vizhinjam is just one component of a broader investment strategy. Numerous infrastructure projects are advancing under the Maritime India Vision 2030 and Vision 2047 roadmaps, which aim to position India among the top 10 shipbuilders by 2030 and the top five by 2047. The government has launched a ₹25,000 crore Maritime Development Fund for shipbuilding and repair facilities, complemented by tax incentives, import duty exemptions, and plans to develop eight shipbuilding clusters nationwide.

Global disruptions and arbitrary sanctions have increased shipping industry risks. In response, the government is developing a domestic Protection and Indemnity insurance entity (tentatively called the "India Club"). Initially focusing on coastal and inland fleets, this initiative will strengthen sovereign maritime insurance capacity and provide financial protection for Indian vessels on strategic trade routes. The resulting continuity and financial security will strengthen India's position during global disruptions or potential sanctions.

While the full impact of these legislative changes remains to be seen, early improvements are evident. Shipping efficiency has markedly improved. Governance reforms under Sagarmala, enhanced connectivity through PM Gati Shakti, and digital systems implementation have reduced port turnaround times by approximately 30% over the past decade. At major ports, vessel turnaround time decreased from 53 hours in FY2022 to 48 hours in FY2024. Berth-day output has increased by 18%, indicating improved capacity utilization. Two Indian ports now rank among the global top 30.

Challenges persist. Enhancing fleet competitiveness requires financing, insurance, and fiscal incentives. Coastal transshipment needs sustained policy support regarding incentives and licensing, along with specific accommodations within customs and taxation frameworks.

Nevertheless, recent initiatives establish new standards for maritime governance and ambition compared to previous administrations. Moving forward, success will depend on effective project execution, regulatory clarity across ministries, and targeted support for domestic shipbuilding and repair capabilities.

India possesses the coastline, strategic location, and human resources necessary for maritime success. With proper scale and discipline, the country may reclaim its ancient maritime prominence.

The writer is a graduate from the Harvard Kennedy School and a public policy consultant. These are the personal opinions of the author.