Inland Waterways in India – Explained Pointwise

India possesses an extensive network of inland waterways in the form of rivers, canals, backwaters, and creeks. These routes offer a cost-effective and environmentally sustainable way to move freight, as they use fuel efficiently and produce fewer emissions. They require minimal land, safely carry bulk/over-dimensional cargo, and maintain high safety standards across operations.
Recognising this potential, the Union Budget 2026-27 announces the operationalisation of 20 new National Waterways over the next five years and introduces a Coastal Cargo Promotion Scheme that seeks to shift cargo from road and rail to water transport. This policy push is intended to increase the combined share of inland waterways and coastal shipping from 6% to 12% by 2047.
In this article we will look at the status of Inland waterways sector in India. We will look at its advantages and the initiatives taken for its development. We will delve into the challenges that the sector faces with the way ahead for the sector.

Table of Content

What is Inland Water Transport (IWT)? What is the status of Inland waterways in India? What are the advantages of Inland Waterways in India? What are the government initiatives for the development of Inland Waterways in India? What are the key challenges facing Inland Waterways in India? What should be the Way Forward for the development of Inland Waterways in India?

What is Inland Water Transport (IWT)? What is the status of Inland waterways in India?

• Inland Waterways: Inland waterways are navigable water channels within a country that are not part of the sea. These include rivers, canals, lakes, lagoons, and certain river estuaries. They are suitable for navigation due to natural or man-made features and allow vessels carrying at least 50 tonnes under normal operating conditions. They support commercial transport that ranges from natural river routes to completely engineered channels, and are commonly classified into three main types:
  1. Open River Waterways are natural rivers where vessels operate in a largely free-flowing channel, with limited improvements made to maintain sufficient depth for movement.
  2. Canalised Waterways are rivers that have been modified using structures such as locks and dams, which divide the river into calmer sections and provide more reliable water levels for transport.
  3. Canals are man-made waterways built specifically to carry vessels, often to avoid natural barriers or to connect different rivers and lakes, offering fully controlled conditions for inland water transport.
• Inland Waterways in India:

 

• According to the Economic Survey 2025-26, as of November 2025, cargo operations are functional on 29 National Waterways, cruise operations on 15 National Waterways, and passenger services on 23 National Waterways. A total of 11 National Waterways support all three modes of transport, namely cargo, cruise, and passenger movement, signifying strong multimodal integration.
• Passenger traffic has also grown significantly, increasing from 1.61 crore in 2023-24 to 7.6 crore in 2024-25. Cargo transportation on NWs reached 145.84 million metric tonnes in the financial year 2024-25, and 198 MMT (till February 2026) in the financial year 2025-26. The combined cargo handling capacity of major ports rose from 555 million metric tonnes per annum (MTPA) in FY 2013-14 to 1,681 MTPA in FY 2024-25.
• The turnaround time for container vessels declined substantially from 41.76 hours in 2013-14 to 28.5 hours in 2024-25.

What are the advantages of Inland Waterways in India?

1. Lower Transportation Costs: Inland water transport (IWT) is considerably cheaper than road and rail transport. It is reported to be 60% cheaper than road transport and 20-30% cheaper than rail.
2. Fuel and energy efficiency: It is a fuel and energy efficient medium of transportation as compared to the other modes of transport like rail and road. The Integrated National Waterways Transportation Grid Study states that one litre of fuel will move 24 tons through 1km on road, 85km on rail and 105 km on inland water transport.
3. Environment Friendly: IWT emits 10 times less carbon dioxide per ton-kilometer compared to road transport, contributing to lower greenhouse gas emissions.
4. Less Land Requirement: Utilization of waterways minimizes the need for extensive land acquisition. The land acquisition is often a contentious and time-consuming process associated with road and rail projects.
5. Employment Generation: The development of inland waterways is labor-intensive, creating jobs in various sectors such as river conservancy, vessel operation, terminal management, and tourism.
6. Better connectivity: IWT helps in creating seamless interconnectivity connecting hinterlands along navigable river coasts and coastal routes. Further, riverine routes are likely to play a crucial role in connecting the north-eastern states to the mainland.
7. Tourism Development: Inland waterways can boost tourism through initiatives like river cruises. This helps to enhance passenger movement and also promote cultural and heritage tourism along riverbanks.

What are the government initiatives for the development of Inland Waterways in India?

National Waterways Act, 2016	The National Waterways Act, 2016, declares 111 inland waterways as ‘National Waterways (NWs) across the country to stimulate shipping and navigation. The total length of these NWs is 20,187 km, and they are spread across 23 States and 4 Union Territories of India. As of March 2026, 32 National Waterways are operational, spanning 5,155 km in the country for cargo and passenger movement, and the number is proposed to increase to 52 in the next 5 years.
The Inland Waterways Authority of India Act, 1985	The Inland Waterways Authority of India Act, 1985 provides for the creation of a dedicated authority to regulate and develop inland waterways for shipping and navigation, along with related activities. Under this Act, the Inland Waterways Authority of India (IWAI) was established by the Central Government to develop and regulate inland waterways for shipping and navigation. The IWAI mainly works on developing and maintaining infrastructure for inland water transport (IWT) on national waterways.
Maritime India Vision 2030	Maritime India Vision 2030 (MIV 2030) is a strategic roadmap released by the Government of India to modernize and expand the maritime sector by 2030. Inland Water Waterways Authority of India (IWAI) aims to increase the modal share of freight movement through IWT from 2% to 5% and traffic volume to more than 200 MMT by 2030 & 500 MMT by 2047 in line with the Maritime India Vision 2030.
Maritime Amrit Kaal Vision 2047	Maritime Amrit Kaal Vision 2047 is India’s long-term strategic roadmap to transform its maritime sector by the year 2047. The Amrit Kaal Vision 2047 Action Points have been defined across 11 key themes which are provided as below.
Jal Marg Vikas Project	The Jal Marg Vikas Project, along with Jal Marg Vikas Project-II (Arth Ganga), is being implemented to improve navigability on National Waterway-1 and to support the socio-economic development of communities along the Ganga River banks.
Sagarmala Programme	It aims at enhancing multi-modal connectivity including rail, inland water, coastal and road services.
Interlinking of Rivers Programme	The project is expected to offer potential benefits to the inland waterways transport sector through navigation.
Jalvahak Scheme	Jalvahak scheme promotes a strategic transition of cargo to inland waterways by providing incentives to vessel operators and supporting scheduled cargo services on NW-1, NW-2 and NW-16 via the Indo-Bangladesh Protocol (IBP) route. Under the scheme, up to 35% of the actual operating cost of a waterway journey is reimbursed. The scheme is expected to shift about 800 million tonne kilometres of cargo to inland waterways, which is nearly 17% of the total cargo movement currently carried on National Waterways.
The Inland Vessels Act, 2021	It brings uniform rules for inland waterways across the country. It ensures safe navigation and protects life and cargo. It also reduces pollution from the use of inland vessels. The Act promotes transparent and accountable administration of inland water transport.
The Coastal Shipping Act, 2025	The Coastal Shipping Act, 2025 states that the Central Government publishes a National Coastal and Inland Shipping Strategic Plan within two years of the Act’s commencement, and updates it every two years. The Strategic Plan identifies coastal shipping routes, including those that overlap with inland waterways, and specifies the operational improvements needed to make coastal maritime transport more cost-efficient for goods and passengers.
Harit Nauka Inland Vessels Green Transition Guidelines	Harit Nauka Inland Vessels Green Transition Guidelines provide a strategic framework for making inland water transport cleaner, more efficient, and future-ready in line with India’s National Maritime Vision.
River Cruise Tourism Roadmap, 2047	The River Cruise Tourism Roadmap 2047 provides a structured framework to promote river cruise tourism in India. It focuses on four key pillars: infrastructure development, integration, accessibility, and supportive policy measures.
Digital Initiatives	CAR-D (Cargo Data) is a web-based portal developed by the Inland Waterways Authority of India (IWAI) to collect, analyse, and share data on cargo and cruise movement on National Waterways. Least Available Depth Information System (LADIS) has been introduced to share information on the minimum available water depth in navigation channels on selected National Waterways. An assured water depth is essential for the smooth movement of vessels. River Information Services (RIS) is an integrated digital system designed to improve safety, efficiency, and traffic management on inland waterways. It enables real-time vessel tracking, monitors waterway and navigation conditions, and provides updates on weather and water levels. It also supports communication between vessels and control centres. IWAI Vessel Tracker and PANI Portal together offer a digital solution for e-navigation on inland waterways. They are available as a web portal and a mobile application. The system provides updated navigation routes, water depth information, and real-time vessel tracking to support safe and efficient movement.

What are the key challenges facing Inland Waterways in India?

IWT is the most economical mode of transportation, especially for bulk cargo like coal, iron ore, cement, food grains and fertilizer. However presently the IWT sector remains underutilized at a share of 2% in India’s modal mix due to the following challenges:

1. Infrastructural/Technical challenges: There is challenge of Inadequate depths in Indian rivers, especially northern rivers which suffer from high siltation. This necessitates extensive dredging of Indian rivers.
2. Lack of Adequate Terminals: There is a shortage of modern terminals and maintenance, repair, and overhaul (MRO) facilities for vessels, impacting their operational efficiency.
3. Environmental Concerns: Dredging activities necessary for maintaining navigability can lead to environmental degradation (like riverbed damage, aquatic species damage) and community resistance due to fears of displacement or ecological harm.
4. Technical Limitations: Low vertical clearances from bridges obstruct the passage of bigger vessels and the lack of Night Navigation Facilities such as Differential Global Positioning Systems (DGPS) hampers safe navigation at night.
5. Institutional and Regulatory challenges: The IWT sector is often burdened by regulatory complexities and overlapping jurisdictions among various government agencies. For ex- Multiple authorities including the Central Inland Water Corporation Limited (CIWTC Ltd), port authorities and state governments.
6. Lack of funds: Dredging as well as infrastructure for IWT requires huge investments. However, both public and private funding in the sector is low.

What should be the Way Forward for the development of Inland Waterways in India?

NITI Aayog has recommended the following measures for the development of Inland Waterways in India:

1. Streamline the governance of inland waterways: NITI Aayog recommends streamlining the regulatory structure and bringing an overarching body to oversee Inland Water Transport.
2. Develop measures for year-round navigation: Efforts should be made to develop deeper stretches of the river, i.e., at least 2.5 m to 3 m to achieve year-around navigation. Further the adequate maintenance of rivers, including continuous dredging to maintain adequate water depth for servicing shipping lines should be ensured.
3. Ease restrictions on river-sea movement: Utilizing a single vessel for both inland and coastal waters, lowers transport costs and minimizes handling. The state authorities should draw up coordinates for inland vessel limits under the Inland Vessel Act for their coastal waters.
4. Creation of Inland Waterways transport hub in the North East: State governments should commence work on dredging and channel stabilization to create about 20 new ports in the Brahmaputra and Barak rivers. The protocol for Inland Waterways between Bangladesh and India should be extended for at least 10 years to reduce uncertainty.
5. Strengthen public-private partnership: Private players can undertake terminal development, cargo and passenger handling, and building low-draft vessels and related repair facilities.
6. Increasing economic activities along the Inland waterways: PM Mitra parks, Mega food parks, should be located along the inland waterways route to encourage use of National Waterways (NWs).

Conclusion: India’s inland waterways journey signifies an evident shift in how the country views its rivers, not merely as natural assets but as active instruments of growth, sustainability, and inclusion. By addressing the challenges & providing supportive policies, we can collectively shape a future where India’s inland waterways emerge as prevailing passageways of economic vitality, ecological balance, and shared national progress.

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