India’s Inland Waterways – Emerging Sustainable Transport Solution

India’s inland waterways are witnessing revival in 2025. Once the backbone of trade and civilisation, river transport is becoming a practical and eco-friendly alternative to road and rail. Rising fuel costs, traffic congestion, and environmental concerns have led to renewed interest in utilising the country’s vast network of navigable rivers for cargo movement. Over the last decade, cargo transported via inland waterways has surged from 18.1 million metric tonnes in 2013-14 to 145.84 million metric tonnes in 2024-25. This growth reflects a strategic shift towards sustainable and cost-effective logistics.

Historical Context and Recent Developments

India’s rivers historically connected cities and trade hubs. However, the rise of road and rail diminished their importance. The Inland Waterways Authority of India (IWAI) has revived this sector through projects like the Jal Marg Vikas Project on National Waterway-1. This project has developed key terminals along the Ganga-Bhagirathi-Hooghly river system at Varanasi, Sahibganj, and Haldia. Cargo traffic on NW-1 has tripled in ten years. In the North-East, National Waterway-2 on the Brahmaputra is enhancing trade access for Assam and neighbouring states, supported by Indo-Bangladesh Protocol routes.

Economic and Environmental Benefits

Waterways offer distinct advantages over other transport modes. Freight movement by water is more fuel efficient; one litre of fuel can move 105 tonne-km by water compared to 24 tonne-km by road. This results in lower freight costs and reduced carbon emissions. Inland water transport supports India’s Net-Zero goal by promoting greener logistics. Additionally, it creates employment opportunities in cargo handling and vessel operations, contributing to local economies.

Infrastructure and Integration Efforts

IWAI is developing multimodal hubs to integrate waterways with rail and road networks. Terminals at Kalughat, Varanasi, and Sahibganj are key nodes in this strategy. The Jalvahak Cargo Promotion Scheme incentivises cargo movement by reimbursing up to 35% of costs on eligible routes. The Jal Samriddhi Portal simplifies approvals and encourages private sector participation. Partnerships with companies like Rhenus Logistics aim to expand barge fleets and improve service quality.

Challenges and Technological Innovations

Inland waterways face challenges such as fluctuating water depths, dredging needs, and limited vessel availability. IWAI addresses these with long-term dredging contracts and vessel modernisation. Digital tools like CAR-D, PANI, and NavIC enhance navigation and route planning. Green technology initiatives include India’s first hydrogen fuel cell-powered vessel and hybrid-electric catamarans, marking a shift towards cleaner maritime transport.

Future Prospects

India has over 20,000 km of navigable rivers, but only a fraction is utilised. With increasing logistics demand and environmental targets, inland waterways offer scalable and sustainable growth potential. The India Maritime Week 2025 will show these developments, bringing together stakeholders to accelerate the sector’s expansion. This revival of river transport may transform India’s supply chains into greener, more efficient networks.

Questions for UPSC:

1. Critically analyse the role of inland waterways in India’s sustainable transport and economic development. With suitable examples, explain the challenges faced in their expansion.
2. Comment on the importance of multimodal transport integration in India’s logistics sector. How does it enhance efficiency and reduce environmental impact?
3. What are the key environmental benefits of shifting freight transport from road to inland waterways? Explain with reference to India’s Net-Zero goals.
4. Underline the technological innovations in inland water transport in India. How do digital tools and green vessel technologies contribute to the sector’s growth?

Answer Hints:

1. Critically analyse the role of inland waterways in India’s sustainable transport and economic development. With suitable examples, explain the challenges faced in their expansion.

1. Inland waterways offer cost-effective, fuel-efficient cargo movement; e.g., fuel moves 105 tonne-km by water vs 24 by road.
2. Significant cargo growth – from 18.1 million tonnes (2013-14) to 145.84 million tonnes (2024-25), showing economic relevance.
3. Projects like Jal Marg Vikas on NW-1 (Ganga-Bhagirathi-Hooghly) have tripled cargo traffic, boosting regional trade hubs (Varanasi, Haldia).
4. North-East’s NW-2 on Brahmaputra enhances connectivity, leveraging Indo-Bangladesh Protocol routes for cross-border trade.
5. Challenges include fluctuating water depths, dredging requirements, vessel scarcity, and seasonal navigability affecting reliability.
6. Infrastructure gaps and need for integration with rail/road; also, private sector participation still evolving despite incentives.

2. Comment on the importance of multimodal transport integration in India’s logistics sector. How does it enhance efficiency and reduce environmental impact?

1. Multimodal hubs (e.g., Kalughat, Varanasi, Sahibganj) enable seamless cargo transfer between waterways, rail, and road.
2. Integration reduces transit times, lowers handling costs, and improves supply chain reliability.
3. Combining modes optimizes route planning, reducing empty runs and fuel consumption.
4. Encourages shift from road-heavy transport, cutting congestion and emissions in urban corridors.
5. Supports sustainable logistics aligned with India’s Net-Zero goals by lowering carbon footprint.
6. Government schemes and platforms (Jalvahak, Jal Samriddhi Portal) promote private sector collaboration in multimodal infrastructure.

3. What are the key environmental benefits of shifting freight transport from road to inland waterways? Explain with reference to India’s Net-Zero goals.

1. Water transport is more fuel-efficient, moving 105 tonne-km per litre vs 24 tonne-km by road, reducing fuel consumption.
2. Lower greenhouse gas emissions per tonne-km help cut India’s carbon footprint in transport sector.
3. Reduced road congestion lowers air pollution and noise, improving urban environmental quality.
4. Supports India’s Net-Zero target for 2070 by promoting greener logistics alternatives.
5. Facilitates adoption of cleaner vessel technologies (hydrogen fuel cells, hybrid-electric crafts) for further emission reduction.
6. Preserves ecological balance by reducing road infrastructure expansion and associated environmental degradation.

4. Underline the technological innovations in inland water transport in India. How do digital tools and green vessel technologies contribute to the sector’s growth?

1. Digital navigation tools like CAR-D, PANI, and NavIC improve route planning, vessel tracking, and safety.
2. Long-term dredging contracts and vessel upgrades help maintain navigability and operational efficiency.
3. Introduction of India’s first hydrogen fuel cell-powered vessel marks a shift to zero-emission propulsion.
4. Hybrid-electric catamarans reduce dependence on fossil fuels and lower operational emissions.
5. Digital portals like Jal Samriddhi simplify project approvals, encouraging private investment and faster infrastructure development.
6. Technology adoption enhances reliability, reduces costs, and attracts new users, accelerating sector expansion.