Indian Economy
Inland Water Transport in India
- 08 Aug 2025
- 11 min read
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
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.
- National Transport Policy Committee (1980) recommended the following few criteria for declaring a national waterway:
- 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.
- 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.
- 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.
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:
 2030.webp)
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.
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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)
