Since 2014, the number of operational national waterways has increased by 767%, and cargo traffic has grown from 18 million tonnes to 133 million tonnes.
India’s inland waterways have historically been vital for trade and connectivity. However, their potential remained untapped until the visionary leadership of Prime Minister Narendra Modi revitalized this sector. The Inland Waterways Development Council (IWDC), established in 2023, is a shining example of cooperative federalism and an ambitious step towards harnessing the economic and environmental benefits of inland water transport (IWT). Legislative reforms, including the National Waterways Act 2016 and Inland Vessels Act 2021, have streamlined vessel operations and safety.
The IWDC announced investments exceeding ₹50,000 crore over the next five years. Significant infrastructure developments in 21 inland waterway states, worth ₹1,400 crore, were unveiled, marking a transformational leap in the nation’s logistics and connectivity landscape. Modi Government emphasized that inland waterways represent a sustainable and efficient alternative to road and rail networks, decongesting traditional transport routes.
Employment Generation and Skill Development in the IWT Sector
The Inland Waterways Development Council (IWDC) is focused on driving economic growth, employment generation, and skill development, alongside fostering regional connectivity and reducing logistics costs. One of the key aspects of IWDC’s strategy is the development of shipbuilding and repair facilities across National Waterways (NWs). This initiative aims to enhance the inland water transport (IWT) sector by not only reducing operational costs but also boosting ancillary industries. It is expected to generate significant employment opportunities, particularly for riparian communities, while promoting the development of local economies through better access to transportation. The government also plans to establish nine Regional Centres of Excellence (RCoEs) to skill the workforce, encouraging innovation and research in the marine and IWT sectors. These RCoEs will help create job opportunities and foster a highly skilled workforce across the nation.
Investments and Infrastructure Development
Significant investments in the development of National Waterways are also underway. For instance, ₹267 crore has been allocated for the development of various National Waterways, including NW-3, NW-4, NW-5, and 13 new NWs. This investment is part of a broader plan to boost river cruise tourism, which has already seen a remarkable increase in the number of vessels—from just three in 2013-14 to 25 in 2023-24. The government’s ambitious Cruise Bharat Mission aims to establish 100 river cruise terminals and five marinas, further boosting tourism, employment, and regional trade. In addition, the IWDC has outlined a substantial investment of over ₹1,000 crore in Assam to develop regional waterways, enhance infrastructure, and improve connectivity. These projects are expected to spur economic growth in the region and create jobs.
New Jetties and Ship Repair Facilities Across Regions
The government’s commitment to enhancing inland waterways extends to setting up various jetties, ship repair facilities, and new infrastructure. For example, in Andhra Pradesh, six floating steel jetties are being established, while Assam will benefit from the creation of new tourist jetties and ship repair facilities. Uttar Pradesh is also receiving significant investments, including the construction of floating jetties, electric catamarans, and a ship repair facility in Ghazipur. These projects not only promote regional economic growth but also enhance the logistics and transport infrastructure of the country.
Incentivizing Cargo Movement through the Jalvahak Scheme
The government is also incentivizing the movement of cargo via inland waterways through the Jalvahak Scheme, which offers a 35% subsidy to promote the use of IWT. The scheme is expected to significantly reduce logistics costs, making Indian businesses more competitive. It is particularly important for the growth of the IWT sector, as it encourages cargo operators to utilize inland waterways for long-haul transport. This initiative, along with the growing infrastructure developments, is contributing to the Modi government’s broader vision of transforming India’s transport sector and achieving the goal of Viksit Bharat.
Growth and Legislative Reforms in the IWT Sector
In terms of the impact of these projects, the IWT sector has seen a staggering 767% increase in the number of operational National Waterways since 2014. Cargo traffic on these waterways has grown from 18 million tonnes a decade ago to 133 million tonnes in FY 2023-24. This growth has been accompanied by a 233% increase in investments in National Waterways, which highlights the government’s commitment to developing the sector. Legislative reforms, such as the National Waterways Act 2016 and the Inland Vessels Act 2021, have streamlined vessel operations, ensuring smooth and safe movement of cargo across the country.
Cooperative Federalism in Action
The IWDC exemplifies the Modi government’s approach to governance—bringing together the Centre and states to unlock the full potential of India’s inland waterways. The participation of ministers from multiple states highlights the shared commitment to national progress.
Towards Viksit Bharat Through Inland Waterways
Overall, the IWDC’s focus on infrastructure development, employment generation, and regional connectivity reflects a comprehensive approach to leveraging India’s waterways for economic transformation. The initiatives not only promise immediate economic benefits but also lay the foundation for long-term growth, ensuring that the country’s inland waterways play a crucial role in the realization of Viksit Bharat.
Prime Minister Modi’s focus on transforming transportation underpins India’s march towards becoming a developed nation by 2047. The inland waterways sector is a critical component of this journey, demonstrating how innovation, sustainability, and cooperation can propel India to new heights.
As the nation sails forward, the rejuvenation of inland waterways is not just a logistical triumph—it’s a testament to the Modi government’s resolve to transform India into a Viksit Bharat.
