UPSC CURRENT AFFAIRS – 29th March 2025

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Lok Sabha Passes Carriage of Goods by Sea Bill, 2024

Why in News?

On March 28, 2025, the Lok Sabha passed the Carriage of Goods by Sea Bill, 2024, which aims to modernise India’s maritime shipping laws by replacing the century-old Indian Carriage of Goods by Sea Act, 1925. The new Bill aligns Indian maritime law with international conventions and introduces clear provisions for responsibilities, liabilities, rights, and immunities of carriers involved in sea transport.

What the New Law Proposes

  • Replaces the outdated 1925 Act, which was based on British-era maritime practices.
  • Brings Indian legislation in line with international maritime conventions such as the Hague Rules, Hague-Visby Rules, and other global standards on the carriage of goods by sea.
  • The law applies to goods transported:
    • From an Indian port to a foreign port
    • Between two Indian ports (coastal shipping)

Key Features of the Bill

Provision

Description

Legal Clarity for Carriers

Defines responsibilities, liabilities, rights, and immunities of shipping companies.

Simplified Maritime Regulation

Focuses on ease of doing business and clarity in legal procedures.

Applies to both foreign and domestic routes

Enhances regulatory scope to both international and coastal shipping.

Stakeholder Consultations

Minister stated the law was developed with inputs from key maritime stakeholders.

Important Terms

  • Carrier: A person or company that undertakes the transport of goods by sea.
  • Consignee: The person or party to whom the goods are delivered.
  • Immunities of Carriers: Legal protections from certain liabilities, like those caused by natural perils.
  • International Conventions: Agreements between countries that set common rules (e.g., Hague-Visby Rules) for maritime transport and liability.

Debate in Parliament: Support vs Criticism

Government’s Stand

  • The bill simplifies legal framework, making India’s shipping industry more globally competitive.
  • Replacing colonial-era laws is part of ongoing efforts to modernise India’s legal architecture.
  • Will help support India’s goal to become a shipping and logistics hub.

Concerns Raised by Opposition

  • Centralisation of power: Several MPs alleged the Bill grants excessive control to the Union government, sidelining state governments and local players.
  • Privatisation worries: Critics claimed it promotes privatisation of ports and shipping under the garb of reform.
  • Trader & farmer impact: MPs from Maharashtra and Bihar flagged lack of safeguards for fishermen, farmers, and small traders.
  • Transparency issues: Allegations of benefiting select private companies and undermining public accountability.
  • Federalism concerns: TMC’s Pratima Mondal said the Bill weakens the federal structure and marginalises states and small logistics firms.

Why This Bill is Significant

  • Maritime transport handles over 90% of India’s international trade by volume.
  • India’s shipping and port infrastructure is crucial for ‘Make in India’, export growth, and logistics cost reduction.
  • Modern laws improve investor confidence, dispute resolution, and compliance with international obligations.
  • The Bill complements the government’s broader strategy to revamp colonial-era laws across sectors.

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