The Indian government has passed a key amendment modernising the 1856 Indian Bills of Lading Act, marking a significant step in aligning the country’s maritime legislation with international trade practices.
The amendment, introduced on 9 August 2024 and passed on 10 March 2025, strengthens two crucial aspects: it clarifies that all contractual rights contained within a bill of lading are automatically transferred to the consignee or lawful endorsee, and confirms that, in the hands of a bona fide holder, a bill of lading is conclusive evidence that goods have been loaded.
“This amendment marks a critical milestone for catapulting India’s digital trade ecosystem, embedding legal certainty and modernisation into the heart of maritime commerce,” said Imran Khan, Executive Director of ICC India. “It sends a clear signal that India is very committed to removing the paper trapped in global trade and harmonising with global best practices, which will benefit businesses and supply chains alike.”
This reform addresses legal certainty in shipping documentation and is a notable development in India’s progress towards digitising trade flows. The amendment complements India’s broader efforts to enable the adoption of electronic transferable records (ETRs), aligning with the UNCITRAL Model Law on Electronic Transferable Records (MLETR). According to the MLETR tracker, India has currently achieved the first stage of “MLETR Socialisation”, and is moving towards the “Political Support” stage.
In parallel, India is taking steps to encourage the use of electronic bills of lading (eBLs) in its maritime sector. The Ministry of Shipping has promoted the development of eBLs under the Electronic Port Community System (ePCS) to enhance operational efficiency and reduce paperwork.
In a regional context, India has also piloted cross-border eBL transfers with South Korea, allowing customs authorities to exchange digital documents. This sits alongside the growing adoption of technology-driven supply chain tools, such as RFID tagging and IoT-enabled container tracking, by Indian startups aiming to digitise the end-to-end logistics ecosystem.
Ketan Gaikwad, CEO of Receivables Exchange of India Ltd (RXIL), said, “This development is a step ahead towards the digitization of international trade for India and a long-awaited one, considering India has made significant progress in the supply chain financing of the local supply chain via digital TReDS and other payment mechanisms.”
“The transport & logistics space has much to gain from eBLs and UNCITRAL’s MLETR. The legislative progress achieved by India over the last decade offers an example to the world across digital payments, financing for small and medium-sized enterprises (SMEs), and digital trade,” said Andre Casterman, Board Member at ITFA.
The 2025 Bills of Lading Bill, introduced by the Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal, is set to replace the 1856 Act entirely. The original bill was established at the advent of British colonial rule, and provides a legal framework for imperial benefit; the new draft bill simplifies legal language, removes colonial-era provisions, and grants the Central Government the power to issue directives supporting implementation.
Speaking at the Lok Sabha, Sarbananda Sonowal, India’s Minister of Ports, Shipping and Waterways, said, “The passing of the Bills of Lading Bill, 2025, in Parliament is a significant step in fulfilling Prime Minister Narendra Modi’s vision of modernising India’s legal framework, making it more relevant, modern, accessible, and free from colonial legacies that have long hindered our progress.”
This updated framework is expected to reduce litigation risk and simplify contract enforcement for carriers, shippers, and endorsee holders.
The bill will now proceed to the Rajya Sabha, the upper house of India’s parliament, and is subject to Presidential assent before entering into force, and should strengthen the legal foundation in India’s journey towards trade digitalisation.
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