Under the leadership of PM Narendra Modi, the number of National Waterways (NWs) expanded from 5 to 111. Out of these, 29 NWs are now operational, with the total navigable waterway length increasing from 2,716 km (2014–15) to 4,894 km (2023–24).
India has quietly scripted a historic transformation on its inland waterways, turning underutilized riverine corridors into powerful engines of logistics and green growth. In a landmark achievement, the country recorded a cargo movement of 145.5 million metric tonnes (MMT) in FY 2024–25, a staggering increase from just 18.1 MMT in 2013–14. This represents a compound annual growth rate (CAGR) of 20.86%, underscoring a strategic modal shift in India’s freight ecosystem.
This achievement is more than just a number—it is a vital step toward the vision of Viksit Bharat @2047, where sustainable, efficient, and inclusive infrastructure powers a developed India.
Transforming the Riverine Economy: From Margins to Mainstream
Over the past decade, India has taken decisive steps to reposition inland water transport (IWT) as a mainstream logistics option. Under the leadership of Prime Minister Narendra Modi, the number of National Waterways (NWs) expanded from 5 to 111, following the passage of the National Waterways Act, 2016. Out of these, 29 NWs are now operational, with the total navigable waterway length increasing from 2,716 km (2014–15) to 4,894 km (2023–24).
These blue arteries now facilitate more than just movement—they power economic transformation. Key commodities like coal, fly ash, iron ore, sand, and cement accounted for over 68% of total cargo, while passenger traffic surged to 1.61 crore in 2023–24, signaling multi-sectoral potential.
Infrastructure That Floats Economies
India’s ambitious inland waterway transformation has been anchored in strategic infrastructure investments exceeding ₹6,434 crore since 2014. These investments have reshaped the logistical landscape across multiple regions by creating a seamless, multimodal transport network that blends rivers, roads, and railways. The result is a more resilient and cost-effective logistics system that bolsters economic activity while reducing environmental impact.
The operationalization of MMTs at Varanasi (Uttar Pradesh), Sahibganj (Jharkhand), and Haldia (West Bengal) has created high-capacity nodes where cargo from river vessels can be efficiently transferred to rail and road. These terminals are equipped with material handling systems, storage yards, container depots, and connectivity infrastructure that make cargo handling smooth and economically viable.
Varanasi MMT, located on NW-1 (Ganga), serves as a vital hub for the freight movement from Eastern UP to eastern and northeastern regions.
Sahibganj MMT has unlocked trade potential for Jharkhand, Bihar, and even Nepal.
Haldia MMT, close to the Bay of Bengal, links inland cargo movement to maritime shipping routes, enabling direct global trade.
Inter-Modal Terminal (IMT) at Kalughat: The Kalughat IMT in Bihar provides a critical link between NW-1 and rail freight corridors, allowing direct cargo movement between inland river systems and the Indian Railways network. It is pivotal for industries in Bihar and Eastern India seeking efficient access to seaports.
49 community jetties on NW-1 (Ganga) are enabling economic inclusion by connecting small towns and rural areas directly to the cargo network.
On NW-2 (Brahmaputra), 12 terminals and jetties facilitate freight and passenger mobility across Assam, bridging the state’s economic isolation and supporting local industries such as tea, coal, and construction materials.
These jetties also encourage river tourism and small-scale trade, particularly benefitting self-help groups, rural entrepreneurs, and local transport operators.
Sustainable Fleet: Electric and Hydrogen-Powered Vessels
In a bid to lead the world in green logistics, India is deploying Hybrid Electric Catamarans for passenger and cargo transit, especially in ecologically sensitive regions like Kerala and Assam. Hydrogen-powered vessels, currently under development, promise zero-emission transport, aligning with India’s Panchamrit climate goals and contributing to a greener Maritime Amrit Kaal Vision.
Ripple Effects on Regional Development
These infrastructure projects are not isolated interventions—they are revitalizing entire regional economies:
In Eastern Uttar Pradesh, farmers and small manufacturers now have affordable access to markets via the Varanasi terminal.
In Assam and the Northeast, river routes offer the most viable logistics corridor due to difficult terrain and limited rail coverage.
Bihar and Jharkhand have seen improved trade competitiveness due to direct river-port access and lower logistics costs.
These developments are also enabling the reverse movement of finished goods, helping industries in hinterland India to scale up and tap into national and international demand.
Jalvahak Scheme: A Catalyst for Modal Shift
India’s logistics landscape is undergoing a quiet but powerful revolution with the launch of the Jalvahak Scheme, introduced in December 2024 by the Ministry of Ports, Shipping and Waterways. With a targeted budget of ₹95.42 crore, this scheme is a key enabler for shifting freight movement from congested roads and overburdened railways to cleaner, cost-efficient Inland Water Transport (IWT) systems.
At the heart of the scheme is a 35% operating cost reimbursement for cargo owners who choose to move their goods via inland waterways instead of traditional modes. This direct financial incentive helps bridge the cost gap created by multimodal handling, infrastructure challenges at loading points, and the relative unfamiliarity with riverine logistics among businesses.
This incentive has proven particularly attractive for bulk cargo industries—such as coal, cement, fertilizer, fly ash, and food grains—where even marginal savings on logistics translate into major competitiveness gains.
Scheduled Services: Building Predictability and Trust
The scheme is not just about subsidies—it institutionalizes scheduled cargo services across three critical routes:
- NW-1 (Ganga): Kolkata–Patna–Varanasi
- NW-2 (Brahmaputra): Kolkata–Pandu, via the Indo-Bangladesh Protocol (IBP) route
- NW-16 (Barak River): Kolkata–Badarpur/Karimganj, also via IBP
By establishing time-bound and predictable shipping timetables, the government is addressing one of the most pressing concerns for businesses: reliability. This move helps inland water transport evolve from a backup option into a viable mainstream logistics solution.
Modal Shift with Long-Term National Goals
The Jalvahak Scheme is a cornerstone in the broader plan to increase the modal share of IWT in India:
- From the current 2% to 5% by 2030, under the Maritime India Vision 2030
- To a projected 10% share and 500+ MMT cargo traffic by 2047, aligned with the Maritime Amrit Kaal Vision
This shift is critical for reducing India’s logistics costs, which currently stand at 13–14% of GDP, significantly higher than the global average of 8–9%. Inland water transport offers up to 30–60% cost savings per tonne-kilometer over rail and road, along with dramatically reduced carbon emissions.
Economic and Environmental Multiplier Effect
Beyond just transportation, Jalvahak is also stimulating broader economic, environmental, and employment impacts:
- Industrial decentralization: Enables Tier-2 and Tier-3 cities near rivers to access cost-effective shipping
- Carbon reduction: Significantly lowers CO₂ emissions per tonne of freight moved
- Skill creation: Generates demand for river pilots, vessel operators, and logistics professionals
- Tourism boost: Improves navigability, creating pathways for river cruises and eco-tourism
Policy Push: Modernizing for Private Investment and Ease of Doing Business
A robust policy framework has supported this surge:
- Tonnage Tax Extended (Budget 2025): Inland vessels now enjoy a predictable tax regime based on vessel capacity, promoting investment.
- Regulations for Private Infrastructure: The National Waterways (Construction of Jetties/Terminals) Regulations, 2025 allow private players to build and operate facilities, unlocking PPP potential.
- Port Integration: Key terminals are now managed by Shyama Prasad Mookerjee Port, Kolkata, enabling seamless multimodal logistics.
- Digital Innovations: Platforms like LADIS, RIS, PANI, and MIRS enhance navigation, transparency, and data-driven decision-making.
- Centralized Vessel Registration: A new portal (on the lines of VAHAN & SARATHI) is under development to simplify vessel and crew documentation.
Building the Ecosystem: Aggregation, Rail Links, and Diplomacy
Recognizing the need for regional cargo hubs, the government is building Freight Village in Varanasi and Cluster Logistics Park at Sahibganj With NHLML and IPRCL facilitating rail linkages, these hubs will act as magnets for cargo aggregation and multimodal transfer.
On the diplomatic front, new IWT routes have been activated under the Indo-Bangladesh Protocol, especially Routes No. 5 & 6 (Maia to Sultanganj), boosting regional trade and connectivity.
Strategic Role in Viksit Bharat Mission
India’s inland water transport revival is more than infrastructure—it’s a paradigm shift in mobility and sustainability. It offers:
- Lower Carbon Emissions: IWT emits 50–60% less CO₂ per tonne-km than road transport.
- Cost Efficiency: Water transport is 30–40% cheaper than rail and road for bulk cargo.
- Decongestion: Reduces pressure on highways and railways.
- Inclusive Growth: Revives river-based economies, boosts jobs in remote and riverine regions, and encourages tourism.
These outcomes align directly with the five pillars of Viksit Bharat: Inclusive Growth, Sustainability, Infrastructure Modernization, Innovation, and Global Competitiveness.
India’s record cargo movement through inland waterways signals the success of a silent revolution. It showcases what sustained political will, strategic investment, and innovative policymaking can achieve. As India sails into the Maritime Amrit Kaal, inland waterways are poised to become the blue corridors of India’s next growth story, connecting not just places—but aspirations, opportunities, and futures.
