Inland Waterways

Inland waterways are increasingly emerging as a cost-effective, eco-friendly, and resilient mode of transport in India. Recently, the Chief Economic Advisor (CEA) highlighted the importance of strengthening inland water transport systems to improve India’s logistics efficiency and supply chain resilience.

The importance of inland waterways has become even more significant in the backdrop of disruptions in global shipping routes caused by the West Asian conflict of 2026. Such geopolitical uncertainties have exposed the vulnerability of international trade routes and emphasized the need for strong domestic transport networks that can ensure economic stability and uninterrupted movement of goods within the country.

About Inland Waterways

Inland Water Transport (IWT) refers to the movement of goods and passengers through inland water bodies such as rivers, canals, backwaters, and creeks.

It is regarded as one of the most energy-efficient, economical, and environmentally sustainable modes of transportation, especially for carrying bulk cargo over long distances.

Unlike road and rail transport, inland waterways require comparatively lower fuel consumption and involve lower operational costs, making them highly suitable for large-scale freight movement.

Criteria for National Waterways

The National Transport Policy Committee (1980) recommended that a waterway may be declared a national waterway if it fulfills certain conditions, including:

• A minimum channel width of 45 metres

• A depth of at least 1.5 metres

• A continuous navigable stretch of 50 kilometres

However, exceptions can be made in urban regions and port areas where strategic importance outweighs these requirements.

A waterway is considered commercially navigable when it can support vessels carrying at least 50 tonnes of cargo under normal conditions.

Classification of Inland Waterways

Open River Waterways

These are natural rivers that flow freely with minimal human intervention. Such waterways are largely dependent on natural river conditions and seasonal water flow.

Canalised Waterways

These waterways are modified using engineering structures such as dams, barrages, and locks. Such modifications create calmer and more reliable navigation channels suitable for transport throughout the year.

Canals

Canals are fully man-made waterways designed to connect different rivers or bypass natural obstacles. They play an important role in improving regional connectivity and transport efficiency.

Broader Utility of Inland Waterways

According to the World Bank, inland waterways provide benefits beyond transportation.

They contribute to:

• Tourism development

• Flood control

• Irrigation management

• Protection of ecosystems

• Regional economic development

Thus, inland waterways support both economic growth and environmental sustainability.

Inland Waterways in India

India possesses more than 14,500 kilometres of navigable waterways, making it one of the countries with significant inland water transport potential.Under the National Waterways Act, 2016, the government declared 111 National Waterways across the country.

One of the most important initiatives is the Jal Marg Vikas Project, which focuses on the development of National Waterway-1 (NW-1) along the Ganga-Bhagirathi-Hooghly river system.This project has received support from the World Bank and aims to improve navigation infrastructure, cargo movement, and river transport efficiency.The growth of inland waterways in India has been remarkable. Cargo movement through waterways increased from nearly 18 million tonnes in 2013–14 to approximately 146 million tonnes, registering a compound annual growth rate (CAGR) of nearly 21%.

Importance of Inland Waterways in India’s Supply Chains

Cost-Effective Transportation

One of the greatest advantages of inland waterways is their low transportation cost.

Transporting goods through waterways costs around ₹0.25–₹0.30 per tonne-kilometre, which is significantly lower compared to:

• Rail transport — nearly ₹1 per tonne-km

• Road transport — around ₹1.5 per tonne-km

This substantial reduction in logistics costs improves the competitiveness of Indian industries and supports economic growth.

Massive Bulk Carrying Capacity

Inland waterways are highly suitable for transporting heavy and bulk commodities.

A single 2,000-tonne inland vessel can carry cargo equivalent to nearly 125 trucks.

This makes waterways ideal for transporting:

• Coal

• Cement

• Fertilisers

• Food grains

• Construction materials

Large-scale cargo movement through waterways reduces pressure on roads and railways while improving efficiency.

Reducing Pressure on Roads and Railways

India’s road and railway systems are already heavily burdened due to increasing freight traffic.

Overdependence on road transport leads to:

• Traffic congestion

• Higher fuel consumption

• Increased maintenance costs

• Delays in cargo delivery

By shifting a large share of bulk freight to waterways, inland water transport helps decongest highways and freight corridors.

This reduces wear and tear on physical infrastructure and improves the overall efficiency of the transport network.

Protection Against Global Disruptions

Recent geopolitical crises, including the West Asian conflict, have demonstrated how vulnerable global shipping routes can become during conflicts and instability.

Disruptions in international sea routes often lead to:

• Increased shipping costs

• Higher insurance premiums

• Supply chain delays

• Energy insecurity

Inland waterways provide a secure domestic transport channel that remains insulated from many international disruptions.

This enhances India’s economic resilience and ensures uninterrupted internal trade even during global crises.

Environmental Sustainability

Inland waterways are considered one of the most environmentally friendly modes of transport.

Compared to road transport, inland vessels consume nearly 3–6 times less energy and generate significantly lower greenhouse gas emissions. The promotion of inland water transport supports India’s Panchamrit climate commitments and broader sustainability goals.

Integration of Hinterland Regions

Inland waterways play a major role in connecting landlocked and underdeveloped regions with national and international markets.

States such as:

• Bihar

• Jharkhand

• Northeastern states

can benefit significantly from river-based connectivity.

Waterways such as the Ganga (National Waterway-1) and the Brahmaputra (National Waterway-2) help integrate hinterland economies with major seaports and industrial centres.

This creates new opportunities for:

• Farmers

• MSMEs

• Local industries

• Regional trade

Reliability and Expansion Potential

Unlike roads, waterways are generally free from traffic bottlenecks and offer predictable transit times.

India also possesses enormous untapped potential in inland navigation because a large part of its navigable waterways remains underutilised.

An important advantage is that the development of waterways requires comparatively minimal land acquisition, making expansion easier and less socially disruptive than road or railway expansion projects.

Current Status of Inland Waterways in India

National Waterways Act, 2016

Under the National Waterways Act, 2016, the Government of India declared 111 waterways as National Waterways across 23 States and 4 Union Territories.

Together, these waterways cover nearly 20,187 kilometres of navigable routes.

As of 2026, around 32 waterways, covering nearly 5,155 kilometres, have become operational, while plans are underway to expand operations to nearly 52 waterways.

Operational waterways are equipped with:

• Navigational fairways

• Terminals

• Navigational aids

• Vessel movement systems

These facilities support safe cargo and passenger transport while encouraging private investment in inland navigation.

Rapid Growth in Cargo and Passenger Movement

Expansion of Cargo Transportation

India’s inland cargo movement has witnessed remarkable growth, particularly along important corridors such as:

• National Waterway-1 (Ganga-Bhagirathi-Hooghly system)

• National Waterway-2 (Brahmaputra River)

Cargo movement through inland waterways reached nearly 145.84 million metric tonnes (MMT) in 2024–25 and further increased to around 198 MMT in 2025–26.

This growth reflects the increasing role of waterways in India’s freight transportation network.

Improved Efficiency

The efficiency of inland transport systems has also improved considerably.

The average turnaround time for cargo vessels declined from nearly 41.76 hours in 2013–14 to around 28.5 hours in 2024–25.

This reduction demonstrates improvements in:

• Navigation systems

• Port handling

• Cargo management

• Waterway infrastructure

Faster turnaround times improve logistics efficiency and reduce transportation costs.

Growth in Passenger Traffic

Passenger movement through inland waterways has also increased significantly.

Passenger traffic rose sharply from approximately 1.61 crore passengers in 2023–24 to nearly 7.6 crore passengers in 2024–25.

This reflects the growing importance of waterways not only for freight movement but also for tourism and public transportation.

Modal Share of Inland Waterways

Despite recent growth, inland waterways still account for less than 2% of India’s domestic freight modal share.

In comparison:

• Road transport carries nearly 65%

• Railways carry around 27%

This indicates that inland waterways remain significantly underutilised.

To address this imbalance, India aims to increase the modal share of inland waterways to 5% by 2030.

The government has also set ambitious cargo movement targets of:

• 200 MMT by 2030

• 500 MMT by 2047

Challenges Facing Inland Waterways in India

Inadequate Navigational Depth

One of the biggest challenges for inland waterways in India is the lack of consistent navigational depth or draft.Indian rivers are highly seasonal and heavily dependent on monsoon rainfall. During summer months, water levels decline significantly, making navigation difficult for large cargo vessels.Heavy siltation in rivers further reduces navigable depth and requires continuous and expensive dredging operations.

Infrastructure Deficiencies

India’s inland waterway sector still suffers from major infrastructure gaps.

There is an inadequate availability of:

• Modern terminals

• Roll-on/Roll-off (Ro-Ro) facilities

• Mechanised cargo handling systems

• Warehousing infrastructure

• Last-mile connectivity with highways and railways

Weak multimodal integration limits the efficiency and attractiveness of inland transport.

Low Vertical Clearances

Several rivers and canals in India have low-lying bridges that obstruct the movement of large inland vessels with higher air drafts.

This restricts the use of bigger and more efficient cargo vessels, thereby reducing transport capacity and operational efficiency.

Competing Water Usage

Indian rivers serve multiple purposes, including:

• Drinking water supply

• Agricultural irrigation

• Hydropower generation

• Ecological conservation

In many cases, navigation requirements conflict with irrigation and drinking water priorities.

This creates coordination challenges between the Centre and states regarding river management and water allocation.

Regulatory and Procedural Bottlenecks

Although the Inland Vessels Act, 2021 introduced uniform safety and operational standards, several regulatory challenges continue to affect the sector.

Complex compliance requirements, taxation issues, insurance barriers, and procedural delays discourage private investment and Public-Private Partnerships (PPP) in inland navigation.

India’s Major Initiatives for Inland Waterways

Inland Waterways Authority of India (IWAI)

The Inland Waterways Authority of India Act, 1985 established the Inland Waterways Authority of India (IWAI) as the nodal agency responsible for:

• Development of waterways

• Maintenance of navigational channels

• Construction of terminals

• Regulation of inland water transport

IWAI plays a central role in expanding India’s inland navigation infrastructure.

Jalvahak Cargo Promotion Scheme

The Jalvahak Cargo Promotion Scheme (2024) was launched to encourage industries to shift cargo transportation from roads and railways to waterways.

The scheme provides financial incentives of up to 35% cost reimbursement, thereby improving logistics efficiency and reducing transport costs.

Inland Vessels Act, 2021

The Inland Vessels Act, 2021 introduced uniform national standards for:

• Vessel safety

• Registration

• Pollution control

• Operational procedures

This law improves safety, transparency, and efficiency in inland navigation.

Coastal Shipping Act, 2025

The Coastal Shipping Act, 2025 aims to integrate inland waterways with coastal shipping systems.

This integration strengthens multimodal connectivity and improves freight movement across ports, rivers, highways, and railways.

Harit Nauka Guidelines

The Harit Nauka Guidelines (2024) promote the adoption of environmentally sustainable inland vessels.

The initiative focuses on reducing carbon emissions by encouraging the use of:

• Hybrid vessels

• Electric vessels

• Alternative fuels such as hydrogen and methanol

This supports India’s green transport transition.

Jal Marg Vikas Project (JMVP)

The Jal Marg Vikas Project and its extended initiative Arth Ganga focus on improving navigability along National Waterway-1 on the Ganga River.

These projects aim to:

• Improve cargo movement

• Strengthen river infrastructure

• Promote economic development along riverbanks

• Support local communities

River Cruise Tourism Roadmap 2047

The River Cruise Tourism Roadmap 2047 seeks to promote river-based tourism as a source of:

• Employment generation

• Regional development

• Cultural connectivity

• Sustainable tourism

This initiative highlights the multidimensional benefits of inland waterways.

Digital Initiatives in Inland Waterways

CAR-D Portal

The CAR-D (Cargo Data) Portal developed by IWAI provides real-time data related to cargo and cruise movement across National Waterways.

This improves transparency, planning, and logistics management.

LADIS

The Least Available Depth Information System (LADIS) provides real-time information regarding water depth, ensuring safe navigation for vessels.

River Information Services (RIS)

River Information Services (RIS) use advanced digital systems for:

• Real-time vessel tracking

• Traffic management

• Weather monitoring

• Navigation support

These technologies improve operational efficiency and safety.

Jal Samriddhi Portal

The Jal Samriddhi Portal enables online approvals for jetties and terminals, improving ease of doing business and transparency.

Strengthening Inland Waterways for Better Supply Chains

Continuous Dredging

Scientific and continuous dredging is necessary to maintain sufficient navigational depth throughout the year.

Reliable depth ensures uninterrupted movement of large cargo vessels even during dry seasons.

Integration with PM Gati Shakti

The integration of waterways with the PM Gati Shakti initiative can strengthen multimodal connectivity by linking waterways with:

• Dedicated Freight Corridors (DFCs)

• National highways

• Rail networks

• Coastal shipping systems

This integrated logistics ecosystem will improve supply chain efficiency.

Promoting Green Transport

India should encourage the use of eco-friendly vessels under green maritime initiatives.

The adoption of electric, hybrid, hydrogen-based, and methanol-powered vessels can significantly reduce carbon emissions from the logistics sector.

Encouraging Public-Private Partnerships

The government must provide attractive viability gap funding (VGF) and policy incentives to encourage private investment in:

• Terminals

• Warehouses

• Cargo vessels

• Logistics infrastructure

Private sector participation is essential for rapid infrastructure development.

Boosting Domestic Shipbuilding

Under the Make in India initiative, India should promote the domestic manufacturing of:

• Shallow-draft barges

• Cargo vessels

• Green inland ships

Tax incentives and subsidies can strengthen indigenous shipbuilding capacity.

Conclusion

The development of inland waterways is a strategic necessity for India as it seeks to reduce logistics costs, improve supply chain resilience, and promote sustainable transportation.

Although significant progress has been made in recent years, major challenges such as inadequate depth, infrastructure gaps, regulatory bottlenecks, and weak multimodal integration still need to be addressed.