The Merchant Shipping Act 1958 provides for maritime 'cabotage' or the reservation of Indian coastal trade for Indian vessels.

While cabotage is seen by some as essential to protect the country's maritime interests experts on coastal shipping see it as an anachronism.

Mr S N Srikanth the founder and senior partner of the Chennai based Hauer Associates said that "With the Indian economy growing vigorously the case for diverting freight from road to coastal waterways is compelling. However genuine concerns over the relaxation of cabotage should not be brushed aside."

(Sourced from Business Line)