The Inland Waterways Authority of India (IWAI), operating under the Ministry of Ports, Shipping and Waterways, has announced an unprecedented milestone in cargo transportation for the fiscal year 2024–25. The authority reported that a historic 145.5 million tonnes (MT) of cargo were successfully moved through the National Waterways (NWs), marking the highest ever volume recorded in the nation’s inland waterways sector.
This remarkable achievement represents a substantial 9.34% increase compared to the cargo traffic of the previous fiscal year, 2023–24. When viewed over a longer period, the growth is even more striking, showcasing an impressive leap from the 18.10 MT transported in FY 2013–14. This decadal performance translates to a robust Compound Annual Growth Rate (CAGR) of 20.86%, highlighting the sector’s dynamic expansion.
The significant surge in cargo movement can be attributed to a strategic combination of infrastructure development and proactive policy reforms. Notably, the number of operational waterways has expanded from 24 to 29 active channels in FY25, directly contributing to the enhanced cargo-handling capabilities across the country.
Official data reveals that the top five commodities transported via these waterways were coal, iron ore, iron ore fines, sand, and fly ash. Collectively, these essential materials accounted for over 68% of the total cargo volume moved during the fiscal year.
A pivotal factor driving this growth has been the introduction of the Jalvahak Cargo Promotion Scheme in December 2023. This initiative is designed to incentivize the movement of goods through inland waterways by offering a reimbursement of up to 35% on the actual operating costs incurred by cargo owners and operators. Furthermore, this policy has facilitated the rollout of scheduled cargo services on key National Waterways 1, 2, and 16, including routes utilizing the Indo-Bangladesh Protocol. This strategic shift is projected to transfer approximately 800 million tonne-kilometres of cargo traffic to the more sustainable waterway mode, representing 17% of the current modal share.
Adding further impetus to the sector is the implementation of the National Waterways (Construction of Jetties/Terminals) Regulations, 2025. These regulations are specifically aimed at attracting greater private sector participation by offering a digitally streamlined approval process for obtaining the necessary No Objection Certificates (NOCs). This is expected to foster increased public-private partnerships and joint venture investments in the development of crucial terminal infrastructure.
Efforts to enhance navigability and overall operational efficiency have also played a crucial role. End-to-end dredging contracts have been initiated across critical segments of the waterways to ensure smoother transit. Additionally, the strategic deployment of Roll-on/Roll-off (Ro-Ro) and Ro-Pax ferry services has been instrumental in facilitating the seamless movement of cargo.
These comprehensive and well-coordinated efforts by the government underscore its strong commitment to transforming inland water transport into a competitive and environmentally sustainable logistics option within India’s broader multimodal transport ecosystem.