Inland Water Transport in India

• 08 Aug 2025

For Prelims: PM Gati Shakti, National Waterway, Inland Waterways Authority of India, Multi-Modal Logistics Park, PM MITRA parks, Mega Food Parks  

For Mains: Role of Inland Waterways in India’s transportation network, Infrastructure & Development 

Source: PIB 

Why in News? 

National Waterway-57 (Kopili River) in Assam has been operationalised, boosting Inland Water Transport under Maritime India Vision 2030 and PM Gati Shakti. 

• Now, four National Waterways in Assam- Brahmaputra (NW 2), Barak (NW 16), Dhansiri (NW 31), and Kopili (NW 57), are fully operational.

Key Facts Related to Inland Waterways and Transport in India

• Inland Waterways: Inland Waterways are stretches of water such as navigable rivers, lakes, and canals (excluding the sea), used for transporting goods and people. 
  • Key Features: For a waterway to be classified as an inland waterway, it must support vessels with a minimum carrying capacity of 50 tonnes when fully loaded.  
    • National Transport Policy Committee (1980) recommended the following few criteria for declaring a national waterway: 
      • 45m wide channel and a minimum depth of 1.5m. 
      • Continuous stretch of at least 50 km, with exceptions for urban or intra-port areas. 
    • The Inland Waterways Authority of India (IWAI), established in October 1986, is the nodal agency for the development and regulation of inland waterways for shipping and navigation. 
    • Only National Waterways are under the Central Government; others fall under State Government jurisdiction.
• Inland Water Transport (IWT): 
  • About: Inland Water Transport (IWT) involves the movement of cargo and passengers through navigable rivers, canals, backwaters, and creeks. It is cost-effective and environmentally sustainable.  
    • India has 14,500 km of navigable waterways. 
  • Legislative Framework: 
    • Inland Waterways Authority of India Act, 1985 established IWAI to oversee the development and management of IWT. 
    • National Waterways Act, 2016 declared 111 inland waterways as National Waterways. 
    • Inland Vessels Act, 2021 introduced to streamline regulations around inland vessels, ensuring safe, efficient, and modern water transport. 
    • The National Waterways (Construction of Jetties/Terminals) Regulations, 2025 aims to boost private investment and streamline terminal development.  
  • Growth of IWT in India: 
    • Operational National Waterways (NWs) grew by an impressive 767% from 3 (2014-15) to 29 (2024-25). 
    • The total operational length of National Waterways expanded from 2,716 km (2014-15) to 4,894 km (2023-24). 
    • Cargo traffic surged dramatically from 18.07 MMT (2013-14) to 133 MMT (2023-24), reflecting a CAGR of 22.10%. 
  • Future Projections: The IWAI aims to increase the freight share of inland waterways from 2% to 5% by 2030, with a target of 200+ MMT of cargo traffic. 
    • By 2047 (Maritime Amrit Kaal Vision), India aims to achieve 500+ MMT of cargo movement via inland waterways. 

How Can Inland Waterways Support India’s Maritime Vision 2030? 

• Eco-friendly Transport: IWT is an environmentally friendly option, emitting only 32-36 g CO₂ per ton-km, far lower than 51-91 g by road. 
  • It causes negligible noise and water pollution, aligning with India’s Maritime India Vision 2030 and Panchamrit climate goals. 
  • IWT seamlessly integrates with rail, road, and sea transport, strengthening multimodal logistics hubs and also aids in decongesting transport systems, facilitating faster cargo movement. 
• Cost-effective & Fuel Efficient: IWT is the most cost-effective mode of transport, costing just Rs 0.25-0.30 per ton-km, significantly cheaper than Rs 1.0 by rail and Rs 1.5 by road. 
  • It is also highly fuel-efficient, moving 105 ton-km per litre, compared to 85 by rail and 24 by road. 
• Logistics & Economic Gains: Inland Waterways can reduce logistics costs from 14% to 9% of GDP, saving India approximately USD 50 billion annually. 
  • This improves India’s global competitiveness, helping achieve the goal of becoming a top 25 logistics performer by 2030. 
  • Inland cruise tourism & ferry services on rivers like Ganga, Brahmaputra, Kerala backwaters boost employment, promote eco-tourism, and align with Blue Economy goals. 
• Strategic Connectivity: IWT requires minimal land acquisition, avoiding displacement and ecological disruption. 
  • It ensures last-mile access to remote and eco-sensitive regions, such as the Northeast, and Sundarbans. 
  • It also supports national security and disaster resilience by enabling efficient movement of goods and personnel during emergencies. 

Maritime India Vision (MIV) 2030 

• About: Maritime India Vision (MIV) 2030 is a strategic blueprint to position India as a global maritime hub, focusing on enhancing port-led development and blue economy growth. 
• Objective: It outlines 150 initiatives under 10 core themes, including port infrastructure, logistics efficiency, shipbuilding, coastal and inland waterways, technology adoption, and environmental sustainability. 
• Key Targets: 

What are the Key Challenges in Unlocking the Full Potential of Inland Waterways in India? 

• Seasonal Navigability Constraints: Most Indian rivers are non-perennial, with significant depth fluctuations during dry seasons, limiting year-round navigation. 
• Infrastructure Gaps: National Waterways lack essential infrastructure such as jetties, terminals, vessels, and navigational aids. 
  • There's inadequate multimodal integration, poor mapping of industrial clusters, and high capital costs with limited access to financing. 
• Inadequate Depth: Many waterways lack the required draft (minimum water depth), limiting navigation for large cargo vessels and reducing efficiency and cargo capacity. 
• Underutilisation of Waterways: Only 3.5% of trade in India moves via waterways, much lower than China (47%), Europe (40%), and Bangladesh (35%), signaling underuse of the potential. 
• High Siltation & Environmental Concerns: Frequent siltation requires regular and costly dredging to maintain the necessary channel depth and ensure navigability. 
  • Limited first/last-mile connectivity and time delays push industries towards road/rail transport. 
  • Dredging and port developments also degrade aquatic ecosystems and disrupt riverine communities.

What are the Key Initiatives to Boost Inland Waterways? 

• Jalvahak-Cargo Promotion Scheme (2024): Aimed at incentivising modal shift from road/rail to IWT with a 35% reimbursement of operational costs for cargo owners. 
• Extension of Tonnage Tax: Announced in Union Budget 2025–26  to promote tax certainty and boost private investment in IWT. 
• Port Integration: Multi-modal terminals being integrated to streamline cargo handling between ports and IWT. 
• Digitisation & Centralised Database: A unified digital portal for vessel and crew registration to enhance transparency, logistics planning, and ease of doing business in IWT. 
• Eastern and western Dedicated Freight Corridors (DFCs) 
• Sagarmala Project 
• Jal Marg Vikas Project 
• PM Gati Shakti

What Measures Should be Taken to Improve the IWT in India? 

• Integrated & Sustainable Infrastructure Development:  Enhance multimodal connectivity under PM Gati Shakti and Sagarmala by linking IWT with rail, road, and coastal networks.  
  • Revive dormant waterways (e.g., Kopili model) in states like Bihar, Odisha, and West Bengal with sustainable dredging, EIA compliance, and green vessels for eco-friendly navigation. 
• Private Participation & Financial Incentives: Promote PPP in vessel manufacturing, terminal development, and cargo handling by offering tax benefits, financial incentives, and setting up Inland Waterways Development Funds.  
  • Encourage innovation in logistics through e-platforms, River Information Systems (RIS), and GPS tracking. 
• Cargo & Passenger Movement Boost: Integrate IWT with economic hubs like PM MITRA Parks and Mega Food Parks to improve cargo flows.  
  • Expand passenger transport via Cruise Bharat Mission and incentivize cargo movement under the Jalvahak Scheme through scheduled services on key National Waterways. 
• Capacity Building & Community Development: Invest in skilling workforce in riverine areas for IWT operations and maintenance.  
  • Conserve traditional navigation through Riverine Community Development Scheme, fostering employment and sustainable livelihoods at the grassroots level. 

Conclusion 

Inland Water Transport (IWT) is a cost-effective, fuel-efficient, and eco-friendly mode of cargo movement. Its development under initiatives like Sagarmala and PM Gati Shakti can Strengthen IWT to achieve sustainable logistics and India’s USD 5 trillion economy vision. 

Drishti Mains Question:

Discuss the potential and challenges of Inland Water Transport (IWT) in India. Suggest measures for its effective integration into the national logistics network.

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Q. Enumerate the problems and prospects of inland water transport in India. (2016)