India’s Record Cargo Movement on Inland Waterways

India’s Inland Waterways Authority of India (IWAI), under the Ministry of Ports, Shipping and Waterways, has achieved a historic milestone by recording a cargo movement of 145.5 million metric tonnes (MMT) in FY25, reflecting a Compounded Annual Growth Rate (CAGR) of 20.86% from 18.1 MMT in FY14. A YoY increase of 9.34% was noted from FY24. The five key commodities—coal, iron ore, iron ore fines, sand, and fly ash—accounted for over 68% of total cargo volume. At the same time, passenger traffic reached 1.61 crore in FY24. The number of operational National Waterways (NWs) rose from 24 to 29 as part of the Government’s broader push towards multimodal connectivity. Investments totaling Rs. 6,434 crore (US$ 753.83 million) since 2014 have significantly enhanced infrastructure, increasing operational NW length from 2,716 kilometers (km) to 4,894 km by FY24. Key initiatives include Multi-Modal Terminals (MMTs), Inter-Modal Terminals (IMTs), community jetties, and digital platforms like the Least Available Depth Information System (LADIS) and River Information System (RIS).

To further encourage a modal shift to Inland Water Transport (IWT), the Government introduced the “Jalvahak” Cargo Promotion Scheme on December 15, 2024, offering 35% reimbursement on operational costs and launching scheduled cargo services on key NW routes. The Union Budget 2025-26 also extended the tonnage tax regime to inland vessels under the Indian Vessels Act 2021. Additionally, a regulatory framework for private investment and integration of key terminals under Shyama Prasad Mookerjee Port aims to streamline logistics. Infrastructure for cargo aggregation is being developed through freight villages and logistics parks, supported by Indian Port Rail and Ropeway Corporation Ltd. and National Highways Logistics Management Ltd. India is targeting a 5% modal share for IWT and over 200 MMT traffic by 2030, aligned with Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.