The Bills of Lading Bill, 2025, recently passed by both Houses of Parliament and awaiting President Droupadi Murmu’s approval, is set to revolutionise India’s trade ecosystem by recognising digital Bills of Lading (BoL) and enabling their tokenisation. The landmark reform is expected to save exporters up to $100 billion annually in transaction costs, with major benefits for MSMEs in textiles, chemicals, agri-exports, and polymers sectors.
Currently, physical paperwork for exports often takes 5–7 days, during which cargo remains idle at ports and financing is held up. With India’s logistics costs at 14% of GDP, compared to the global average of about 9%, inefficiencies in trade documentation cost the economy an estimated $110–165 billion every year.
The BoL, a critical shipping document serving as proof of shipment, title of goods, and the basis for customs, banking, and insurance processes, has traditionally been paper-based. The new Act will digitise this process, allowing for blockchain-based, tokenised BoLs that can be securely transferred, immutably recorded, and verified without intermediaries.
Industry experts believe this transition could reduce trade transaction costs by up to 30%, unlocking $80–100 billion in potential value for the Indian economy. MSMEs, often constrained by cumbersome documentation and limited access to finance, stand to gain significantly from faster customs clearance, quicker access to working capital, and smoother entry into global markets.
Pratik Sharma, COO and Co-Founder of Automaxis, said the law would align India’s legal framework with global leaders such as Singapore, the UK, and Bahrain, who have already recognised electronic trade documents. He emphasised that India must ensure compatibility with global standards like the UNCITRAL Model Law on Electronic Transferable Records (MLETR) and the International Chamber of Commerce’s Digital Standards Initiative (DSI) to facilitate seamless cross-border trade.
“The FIT Alliance of major shipping lines has already committed to achieving 50% adoption of electronic BoLs in the next five years. India’s move will accelerate this shift,” Sharma said.
Atul Khekade, Co-Founder of XDC Network, highlighted the role of blockchain in reshaping trade finance: “Tokenised trade documents can be instantly verifiable, transferable, and finance-ready. Banks and logistics players will be able to unlock working capital faster with far lower risks.”
Experts also note that customs officials will benefit from digital pre-clearance systems, enabling faster judgment on consignments and reducing port congestion.
Once enacted, the Bills of Lading Bill 2025 will mark a major step toward positioning India as a digitally empowered, MLETR-compatible trading nation, streamlining global trade flows and enhancing its competitiveness in the international market.
