- The Core
- Posts
- Coast Law Sinks On Delivery
Coast Law Sinks On Delivery
In partnership with
Good Morning. Often, when we think of logistics infrastructure in India, we think of its roadways and railways. We sometimes forget India has a massive coastline that still remains underutilised. China moves a quarter of its domestic freight by sea. India, barely 7%. A new law was meant to close that gap. But industry experts say that it looks less like reform and more like codifying the status quo.
India equity benchmarks stayed flat on Tuesday ahead of India's central bank, the Reserve Bank of India's policy meet. The BSE Sensex was down 97.32 points or 0.12%, closing at 80,267.62. NSE Nifty was down 23.8 points or 0.10% at 24,611.1.
In other news, the Indian monsoons ended with an 8% excess rainfall. Meanwhile, on this week’s Build On Blockchain, how blockchain technology could help fight corruption.
DECODE THE NEWS
Shippers Say India’s New Coastal Law Delivers More Rules, Not Gains
What?
When Parliament passed the Coastal Shipping Act, 2025, in August, the government hailed it as a milestone — a law to replace a colonial-era relic and finally give India’s coastal trade its own modern regulatory backbone. Officials spoke of unclogging roads, reducing logistics costs, and giving Indian-flagged ships priority on domestic waters.
India’s extensive coastline, if utilised, could be a game-changer for logistics. The new law was aimed at modernising and regulating India’s coastal shipping, promoting safer, faster, and more efficient movement of goods along the coast.
Months later, shippers, shipowners, and maritime veterans reveal a different story — one of limited benefits, heightened compliance, and little real relief for those moving cargo along India’s 7,500-km coastline. For all its fanfare, the Act is struggling to convince the very people it was designed to serve.
Why?
The Coastal Shipping Act of 1838 was outdated and ill-suited for modern India. Its framework focused on colonial-era trade, covering only traditional cargo ships, while newer categories, such as barges, rigs and passenger ships, were excluded and not covered under that law. Instead, they ended up being regulated under a patchwork of other laws.
The new law repeals the Coastal Shipping Act of 1838, finally separating coastal trade rules from the Merchant Shipping Act, 1958. It widens the scope to include barges, jack-up rigs, and accommodation vessels, while strengthening penalties for violations.
On paper, it looks like a long-overdue clean-up. But industry insiders argue it merely codifies existing practices without solving bottlenecks. “Honestly speaking, I don’t see how this is going to help in any way to ameliorate or alleviate the requirements of a coastal shipper,” said John Mathews, a shipping veteran with three decades in the sector.
Mathews said that the act focuses heavily on penalties, ensuring shipowners and cargo owners “follow rules they were already following.” In his view, it amounts to codifying the status quo rather than enabling growth.
From the government’s standpoint, this is a balancing act: supporting Indian shipping, ensuring cargo keeps moving and keeping pace with environmental and safety norms.
Will India’s 7,500-km coastline finally deliver on its logistics promise — or will red tape keep it anchored?
MESSAGE FROM OUR SPONSOR
The AI Insights Every Decision Maker Needs
You control budgets, manage pipelines, and make decisions, but you still have trouble keeping up with everything going on in AI. If that sounds like you, don’t worry, you’re not alone – and The Deep View is here to help.
This free, 5-minute-long daily newsletter covers everything you need to know about AI. The biggest developments, the most pressing issues, and how companies from Google and Meta to the hottest startups are using it to reshape their businesses… it’s all broken down for you each and every morning into easy-to-digest snippets.
If you want to up your AI knowledge and stay on the forefront of the industry, you can subscribe to The Deep View right here (it’s free!).
BUILD ON BLOCKCHAIN
Blockchain Takes No Prisoners In Fight Against Corruption
What?
Corruption in public works is one of those things everybody knows exists but nobody can quite prove until the mess is too big to hide. That’s exactly what happened in the Philippines. The country saw major anti-corruption protests just a week ago, the kind India saw in 2011-2012.
Public anger boiled over, tens of thousands took to the streets after it came out that billions spent on flood-control projects had gone down the drain, literally.
The people expressed outrage over a corruption scandal involving politicians, officials and construction company owners who allegedly pocketed huge kickbacks from flood-control projects in the country.
Faced with the protest, the government did something unusual. Instead of ordering a routine inquiry or promising to form a committee to investigate the matter, it reached for technology. A blockchain platform appropriately named ‘Integrity Chain’.
Why It Matters
This system is built to track every contract, every payment, and every project milestone in public works. The USP of this technology is that once a record is added to the system, it can’t be hidden or modified.
Also, the oversight control doesn’t stay with bureaucrats or a committee alone. NGOs, universities, and even journalists can become validators to check if the official story matches the facts.
The blockchain rollout is the government’s way of saying: Don’t believe us? No problem. Believe the new system that cannot be fudged.
How did the Philippines plan this experiment and what can India learn from it?
This series is brought to you in partnership with Algorand India.
CORE NUMBER
Rs 5.98 trillion
That’s the value of India’s fiscal deficit in the April-August period of FY2025-26, according to the Controller General of Accounts (CGA)’s data. It’s equivalent to 38.1% of the country’s year-end target. Last year, for the same period, the fiscal deficit was Rs 4.35 trillion.
Other figures:
Tax receipts: Rs 8.1 trillion in FY 2026 versus Rs 8.7 trillion in FY 2025
Non-tax revenue: Rs 4.4 trillion in FY 2026 vs Rs 3.3 trillion in FY 2025
Finance minister Nirmala Sitharaman’s announcement to cut taxes for people earning below Rs 12 lakh a year likely contributed to lower tax revenue, according to Livemint. But the same move boosted demand as well.
Despite higher early-year spending and a wider deficit, the government has reaffirmed its commitment to fiscal consolidation. It aims to gradually narrow the gap and keep the FY26 deficit within the 4.4% of GDP target, signalling that discipline remains a priority even as outlays rise.
FROM THE PERIPHERY
H1-B Ripple Effect.
Donald Trump’s new restrictions on US work visas, including a $100,000 fee on H-1B applications, are pushing companies to explore shifting more work to India. Industry executives told Reuters that multinationals are leaning on India’s global capability centres, which already account for more than half of the world’s 1,700 such hubs.
Origin: These centres have grown beyond back-office support to handle advanced functions like software development and product design.
Break: Analysts say the trend could accelerate as firms try to avoid visa costs and uncertainty. However, proposals in Washington for an outsourcing tax may complicate decisions to expand further in India.
Coal Wants China Gear.
India’s private coal power producers are pressing the government to lift curbs on importing foreign equipment, arguing domestic supplies are too costly or inadequate, says a letter Reuters reviewed. Though the letter doesn’t explicitly name China, sources told Reuters that China was the implied supplier.
Context: In 2021, New Delhi imposed a “Make in India” rule mandating the use of domestic equipment, partly in the context of high diplomatic tensions with China.
Setting: Now with bilateral relations a bit less strained — some trade and transport links restoring — private firms see an opportunity to revisit the import ban.
Aviation Growth Trimmed.
Rating Agency ICRA has trimmed its forecast for India’s airport passenger traffic growth in FY2026 to 5–7%, reaching 430–440 million, down from its earlier 7–9% projection. This moderation follows cross-border tensions and fleet inspections post the June 2025 crash, which slowed traffic growth in the first five months of FY2026.
What's Next? The expected growth is expected to be the weakest since the Covid-19 pandemic, although international travel remains a bright spot, with 7–10% growth projected, aided by the introduction of new routes and the development of greenfield airports.
By The Numbers: Domestic traffic, however, is set to lag at 4–6%. Cargo volumes are also expected to ease to 4–6% growth from last year’s 10%, with domestic outperforming international. Despite the slowdown, revenues could rise 15–16%, and the sector is poised for major capex exceeding Rs 1 lakh crore over the next five years.
Monsoon Galore!
India’s monsoon season wrapped up with 8% higher than normal rainfall, according to the India Meteorological Department (IMD). This season’s rainfall was the highest since 2001 and the sixth-highest since 1901.
By the Numbers: Heavy rains in September helped lift cumulative precipitation above the long-period average, meaning the 30-year average. IMD chief Mrutyunjay Mohapatra called it a “very successful” season as rains were ample across much of the country, though some eastern and northeastern regions lagged. Some parts also saw disasters like cloudbursts, landslides and mudslides.
Forecast: The surplus will benefit reservoirs, agriculture, and groundwater recharge, while uneven distribution may pose challenges locally.
PODCASTS
Foreign Investors Are Dumping Stocks
On Episode 692 of The Core Report, financial journalist Govindraj Ethiraj talks to Nandivardhan Jain, CEO at Noesis Capital Advisors.
Foreign investors are dumping stocks like no tomorrow
Why gold and silver imports are rising despite high prices
Jim Rogers says when paper money is becoming less trusted in many countries and people are turning to real assets like copper, gold, and silver
India signs trade agreement with four European nations including Switzerland and Norway.
India’s economy needs to expand at an extraordinary 12.2% pace each year to solve its underemployment crisis, Morgan stanley has said
Why hotels are springing up near airports across India
Air Travel and Cargo Demand Show Robust Growth, IATA Reports, even as jet fuel prices continue to fall
MESSAGE FROM OUR SPONSOR
Used by Execs at Google and OpenAI
Join 400,000+ professionals who rely on The AI Report to work smarter with AI.
Delivered daily, it breaks down tools, prompts, and real use cases—so you can implement AI without wasting time.
If they’re reading it, why aren’t you?
THE TEAM
✍️ Zinal Dedhia, Kudrat Wadhwa | ✂️ Rohini Chatterji | 🎧 Joshua Thomas
🤝 Reach 80k+ CXOs? Partner with us.
✉️ Got questions or feedback? Reach out.
💰 Like The Core? Support us.