On July 21, 2025, India’s Parliament passed the landmark Bills of Lading Act, 2025, a transformative piece of legislation that replaces the antiquated Indian Bills of Lading Act of 1856. This reform, described by Union Minister for Ports, Shipping, and Waterways Sarbananda Sonowal as a “watershed moment” for India’s maritime sector, marks a decisive shift from colonial-era regulations to a modern, digital-ready framework. Awaiting Presidential assent, the Act is poised to reshape India’s shipping ecosystem, aligning it with global trade standards and propelling the nation toward its vision of becoming a Viksit Bharat (Developed India) by 2047.

A Break from the Colonial Past

The Indian Bills of Lading Act of 1856, enacted during British rule, was a brief three-section statute designed for a vastly different era of maritime trade. Focused primarily on confirming the transfer of rights and verifying goods loaded onto vessels, it was ill-equipped to handle the complexities of modern global shipping. Over 169 years, as international trade evolved with digital documentation, containerization, and global supply chain integration, the 1856 Act became a relic, hindering efficiency and clarity.

The Bills of Lading Act, 2025, replaces this outdated framework with a modern, streamlined legal structure. It discards archaic terminology, simplifies legal language, and reorganizes provisions to ensure clarity without altering their core intent. By shedding the colonial legacy, the Act embodies India’s commitment to crafting contemporary laws that reflect its sovereignty and global ambitions. As Minister Sonowal aptly stated, “Swarnim Bharat needs statutes that are contemporary, crafted by our own people, and capable of addressing the challenges of the modern era.”

Key Features of the Bills of Lading Act, 2025

The new legislation introduces several pivotal reforms designed to modernize India’s maritime trade ecosystem:

Simplified and Accessible Language: The Act replaces the dense, colonial-era terminology of the 1856 law with clear, business-friendly language. This enhances accessibility for stakeholders, including shippers, carriers, and consignees, reducing misinterpretations and disputes.

Alignment with Global Standards: The Act aligns India’s maritime laws with international conventions, such as the Hague-Visby Rules and, to some extent, the Rotterdam Rules. This ensures compatibility with global trade practices, making India a more competitive player in international shipping.

Digital-Ready Framework: By paving the way for digital documentation, the Act supports the transition from paper-based bills of lading to secure, code-driven digital alternatives. This shift is critical in an era where electronic bills of lading (e-B/Ls) are becoming the global norm, enhancing speed, security, and traceability in trade.

Government Empowerment: The legislation includes an enabling clause that authorizes the Central Government to issue directives for effective implementation. This adaptive approach ensures the law remains relevant amid evolving trade dynamics.

Repeal and Saving Clause: A standard repeal and saving clause ensures continuity by preserving the legal validity of actions taken under the 1856 Act, providing a seamless transition to the new framework.

Strengthened Judicial Framework: The Act provides a clearer legal basis for resolving maritime disputes, reducing litigation risks and ensuring more consistent judicial outcomes.

Benefits and Advantages for India’s Shipping Ecosystem

The Bills of Lading Act, 2025, is set to deliver far-reaching benefits, revolutionizing how India trades, ships, and competes globally:

Enhanced Ease of Doing Business (EoDB): By simplifying documentation and reducing regulatory complexity, the Act streamlines shipping operations, cutting bureaucratic hurdles and expediting processes. This is expected to lower transaction costs and improve efficiency for businesses across the supply chain.

Reduced Litigation Risks: The use of clear, modern language and standardized provisions minimizes ambiguities in shipping documentation, reducing the likelihood of legal disputes. This fosters a more predictable and reliable business environment for carriers, shippers, and consignees.

Global Trade Competitiveness: Aligning with international norms positions India as a leader in maritime law reform. The Act enhances India’s attractiveness as a trade and investment destination, potentially drawing foreign capital to its burgeoning port and shipping infrastructure.

Digital Transformation: The Act’s support for digital documentation aligns with global trends toward e-B/Ls, enabling faster, more secure, and transparent transactions. This reduces reliance on paper trails, minimizes fraud risks, and supports real-time tracking, benefiting logistics professionals and port operators.

Support for India’s Maritime Ambitions: As India’s port sector grows faster than many major global economies, the Act strengthens the nation’s position as a global trade hub. It complements initiatives like the Sagar Mala Programme, which aims to enhance port infrastructure and connectivity.

Balanced Stakeholder Rights: The Act ensures smooth transfer of rights and liabilities among shippers, carriers, and consignees, while preserving critical commercial protections like the right of stoppage in transit and claims for freight. This balance fosters trust and efficiency in trade relationships.

A Step Toward Viksit Bharat

The passage of the Bills of Lading Act, 2025, is a testament to India’s commitment to modernizing its legal frameworks in line with Prime Minister Narendra Modi’s vision of a developed India by 2047. As Minister Sonowal stated, “Whoever rules the waves, rules the world—it’s time India leads from the front.” The Act not only modernizes maritime trade but also symbolizes India’s broader push to shed colonial legacies and assert its sovereignty through contemporary, homegrown laws.

The legislative journey was not without challenges. The Rajya Sabha’s approval on July 21, 2025, came amid an Opposition walkout over unrelated issues, including the Pahalgam terror attack and Operation Sindoor. Yet, the bill’s passage by voice vote underscores the government’s resolve to prioritize transformative reforms despite political hurdles.

Looking Ahead: India’s Maritime Future

Once enacted, the Bills of Lading Act, 2025, will impact every shipment, port, and logistics professional in India. It positions the nation to capitalize on its strategic geographic location and growing maritime infrastructure, reinforcing its role as a rising global power. By transitioning from paper trails to digital lanes, India is not just catching up with global maritime modernity but setting sail to lead it. This reform is a bold step in India’s maritime journey, replacing British ink with Indian code and signaling a new era of efficiency, transparency, and global competitiveness. As the world watches, India’s shipping ecosystem is ready to make waves.