India is steadily transforming its vast network of rivers, canals and backwaters into a modern, efficient and sustainable transport backbone, with inland waterways emerging as a key pillar of the country’s logistics and economic strategy. Backed by strong policy support and rising investments, the sector is witnessing rapid growth in cargo movement, infrastructure development and tourism potential.
With 111 National Waterways spanning 20,187 kilometres across 23 states and four Union Territories, India possesses one of the most extensive inland water transport networks in the world. As of March 2026, 32 of these waterways are operational, covering over 5,100 kilometres, and the government plans to expand this to 52 waterways in the next five years. The Union Budget 2026–27 has further announced the operationalisation of 20 additional waterways, signalling a major push to unlock the sector’s untapped potential.
This expansion is being driven by the recognition that inland waterways offer a cost-effective and environmentally sustainable alternative to road and rail transport. According to global estimates, inland water transport consumes significantly less energy—up to six times lower than road transport—and produces fewer emissions. A single vessel carrying around 2,000 tonnes of cargo can replace nearly 125 trucks, reducing congestion, fuel consumption and logistics costs while easing pressure on existing infrastructure.
The impact of these efforts is already visible. Cargo movement on National Waterways reached an all-time high of 145.84 million metric tonnes in 2024–25 and surged further to 198 million metric tonnes by February 2026. Passenger traffic has also seen a sharp rise, increasing from 1.61 crore in 2023–24 to 7.6 crore in 2024–25. These figures underline the growing importance of waterways not only for freight but also for passenger mobility and regional connectivity.
The government’s long-term vision aims to increase the modal share of inland water transport from the current 2 per cent to 5 per cent by 2030, and significantly higher by 2047, in line with the Maritime Amrit Kaal Vision. Cargo volumes are projected to exceed 200 million metric tonnes by 2030 and reach 500 million metric tonnes by 2047. Complementing this is a broader strategy to double the combined share of inland waterways and coastal shipping from 6 per cent to 12 per cent by 2047.
A key component of this transformation is the development of robust infrastructure. Inland waterways require three essential elements: navigable channels with adequate depth and width, terminals for loading and unloading cargo, and navigational aids for safe vessel movement. The government has been investing in all three areas through projects such as the Jal Marg Vikas Project on National Waterway-1, which spans the Ganga-Bhagirathi-Hooghly river system from Varanasi to Haldia. With an investment of over ₹5,000 crore, the project aims to ensure year-round navigability for large vessels while boosting economic activity along the river corridor.
The Jal Marg Vikas Project has already led to a significant increase in cargo movement on NW-1, which has grown by over 220 per cent in the past decade. Multimodal terminals at Varanasi, Sahibganj and Haldia, along with intermodal connectivity, are strengthening the logistics ecosystem and enabling seamless integration with road and rail networks. Complementary initiatives under the Arth Ganga programme are also focusing on improving livelihoods along riverbanks by connecting small producers, farmers and artisans to markets through water-based transport.
Policy reforms and legislative measures have played a crucial role in shaping the sector. The Inland Waterways Authority of India Act, 1985 and the National Waterways Act, 2016 have provided a strong institutional and legal framework for development. More recent measures such as the Jalvahak Cargo Promotion Scheme aim to incentivise cargo movement on waterways by reimbursing a portion of operational costs, while new regulations encourage private sector participation in building terminals and jetties.
The push towards sustainability is another defining feature of India’s inland waterway strategy. The Harit Nauka guidelines outline a roadmap for transitioning to green vessels, targeting a 30 per cent reduction in carbon intensity by 2030 and 70 per cent by 2047. The plan also aims to convert the entire inland vessel fleet to green alternatives over time, aligning with broader climate goals and reducing the environmental footprint of transport.
At the same time, digital transformation is enhancing efficiency and safety across the network. Systems such as River Information Services enable real-time vessel tracking, weather updates and navigation support, while platforms like the PANI portal and vessel tracking applications provide integrated solutions for operators. Data-driven tools are improving decision-making, reducing delays and promoting transparency in operations.
The development of inland waterways is also opening up new avenues for tourism. River cruise tourism has witnessed notable growth, with the number of cruise voyages rising from 371 in 2023–24 to 443 in 2024–25. The government’s River Cruise Tourism Roadmap 2047 aims to expand cruise operations across dozens of waterways, leveraging India’s rich cultural heritage and scenic river landscapes. Key routes such as the Varanasi to Haldia stretch on NW-1 and the Brahmaputra in the Northeast are already attracting domestic and international tourists.
The North-Eastern region, in particular, is emerging as a focal point for inland waterway development. Investments in the Brahmaputra and Barak river systems, along with new terminals, navigational aids and connectivity projects, are improving transport links and boosting regional trade. Cross-border connectivity with Bangladesh is also enhancing access to international markets, further integrating the region into the broader economic framework.
Looking ahead, the government’s strategy combines infrastructure development, policy support, technological innovation and environmental sustainability to create a future-ready inland water transport system. With rivers being reimagined as engines of growth rather than just natural resources, inland waterways are set to play a pivotal role in reducing logistics costs, improving connectivity, generating employment and supporting inclusive development.
As India accelerates towards its long-term economic goals, the revival and modernisation of inland waterways represent not just a shift in transport policy, but a broader transformation in how the country harnesses its natural assets for sustainable and equitable growth.
