Business

India’s Inland Waterways Record Historic Cargo Surge In FY25

The Inland Waterways Authority of India (IWAI), under the Ministry of Ports, Shipping and Waterways, has reached a major milestone in cargo transportation.

For the fiscal year 2024–25, the IWAI achieved a record 145.5 million tonnes (MT) of cargo movement across National Waterways (NWs)—the highest ever recorded in the inland water transport (IWT) sector.

Cargo Movement Hits Record Growth

This remarkable achievement, however, reflects a compound annual growth rate (CAGR) of 20.86%, rising sharply from just 18.10 MT in FY14 to 145.5 MT in FY25.

Compared to FY24, cargo movement rose by 9.34% year-over-year, according to a statement released by the Ministry.

In addition to the cargo surge, the number of operational waterways increased from 24 to 29 in the past year—paving the way for continued expansion in the current fiscal period.

Key Commodities Drive Waterway Traffic

Five major commodities—coal, iron ore, iron ore fines, sand, and fly ash—accounted for over 68% of total cargo transported on NWs during the fiscal year.

These bulk goods continue to play a central role in inland waterway logistics due to their high volume and cost-effective transportation via rivers.

Policy Reforms Powering Inland Water Transport

The IWAI attributes this growth to a series of proactive policy initiatives and infrastructure upgrades.

In December 2024, the government launched the Jalvahak Cargo Promotion Scheme, which encourages a modal shift to IWT by offering incentives covering up to 35% of the actual operating costs for waterborne cargo movement.

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To complement this scheme, the ministry, however, launched scheduled cargo services on NW-1, NW-2, and NW-16 under the Indo-Bangladesh Protocol route.

Officials estimate that these efforts will divert 800 million tonne-kilometers of cargo to IWT—about 17% of the existing 4,700 million tonne-kilometers transported via National Waterways.

Regulations Invite Private Sector Investment

To accelerate development, the National Waterways (Construction of Jetties/Terminals) Regulations, 2025, now encourage private, public, and joint venture participation in building inland terminals.

Through a simplified digital application for no-objection certificates (NOCs), the IWAI further aims to attract broader investment into the sector.

Infrastructure Upgrades & Digital Integration

In a further push, IWAI implemented a range of physical and digital infrastructure projects:

  • Dredging contracts for key waterway stretches
  • Launch of Roll-on/Roll-off (Ro-Ro) and Ro-Pax services
  • Development of night navigation systems and IWT terminals
  • Digitization via CAR-D and PANI portals
  • Creation of centralized databases for vessel and crew registration through Jalyaan and Navic
  • Introduction of Naudarshika, a real-time National River Traffic and Navigational System

These measures, however, aim to improve operational efficiency, ensure safety, and facilitate the ease of doing business for cargo operators on India’s inland waterways.

Expanding Nationwide Connectivity

IWAI continues to expand its operational footprint with a focus on the capacity enhancement of major routes like NW-1 (Ganga), NW-2 (Brahmaputra), NW-3 (West Coast Canal), and NW-16 (Barak River).

The ministry confirmed that these efforts will create a sustainable and cost-effective alternative to traditional freight transport, easing congestion on roads and railways.

Conclusion: A Future-Ready Transport Model

By combining policy incentives, infrastructure development, and digital solutions, the Inland Waterways Authority of India is steering the country toward a greener, more efficient cargo transport model.

With continued momentum and increased private participation, India’s inland waterways are set to play a major role in the nation’s multimodal logistics network.

Bharat Express English

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