India’s inland waterways freight capacity has reached 1.2 billion tonnes annually, supported by 111 designated National Waterways — 13 of which are operational. Key routes include NW-1 (12.5 MMT/year), NW-2 (2.8 MMT), and NW-3 (1.1 MMT). Transport costs average ₹1.10/tonne-km, significantly below road and rail. Government investment totals ₹9,170 crore ($1.1 billion) across Jal Marg Vikas phases. Emissions could fall by 12.7 million tonnes yearly if 5% of freight shifts to waterways, helping lower logistics costs from 13.5% to 10.2% of GDP.
According to www.drishtiias.com, India’s annual inland waterways freight capacity has reached 1.2 billion tonnes, marking a critical inflection point in national supply chain infrastructure development. This figure reflects cumulative operational capacity across National Waterways (NWs) as of May 2026, per the source’s reporting on transport logistics modernization.
National Waterways Expansion and Operational Metrics
As of May 2026, India operates 111 designated National Waterways, up from just 5 in 2014. The Inland Waterways Authority of India (IWAI) oversees these routes, with 13 waterways currently operational for cargo movement. Among them, National Waterway 1 (Ganga-Bhagirathi-Hooghly River system) handles the largest volume: 12.5 million tonnes of freight annually. National Waterway 2 (Brahmaputra River) moved 2.8 million tonnes in FY 2024–25, while NW 3 (West Coast Canal in Kerala) carried 1.1 million tonnes.
Economic and Environmental Impact
Inland water transport costs ₹1.10 per tonne-kilometre, compared to ₹1.60 for railways and ₹3.50 for road freight — a cost differential that directly lowers logistics expenses for manufacturers and exporters. According to the report, shifting 5% of India’s current road-rail freight mix to inland waterways could reduce annual CO₂ emissions by 12.7 million tonnes. The IWAI estimates that full utilization of existing NWs would cut national logistics costs from 13.5% to 10.2% of GDP by 2030 — aligning with the Logistics Ease Across Different States (LEADS) Index target.
Infrastructure Investment and Connectivity Projects
The government allocated ₹5,350 crore ($642 million) under the Jal Marg Vikas Project (JMVP) Phase I to upgrade NW-1, including construction of multi-modal terminals at Haldia, Varanasi, and Sahibganj. A second phase, launched in April 2025, secured ₹3,820 crore ($458 million) for dredging, navigation aids, and terminal automation. By March 2026, 1,620 km of NW-1 had been made navigable for 1,500–2,000 tonne vessels year-round, up from 560 km in 2015. The source states that eight new multimodal terminals are under construction across NW-2, NW-3, and NW-4 (Godavari-Krishna estuaries), with completion scheduled between Q4 2026 and Q2 2027.
Industry Integration and Supply Chain Implications
Major industrial clusters are now integrating waterways into procurement planning: Tata Steel uses NW-1 for 35% of raw material inbound shipments to its Kalinganagar plant; Adani Ports & SEZ operates dedicated barge services on NW-3, moving 420,000 TEUs annually between Kochi and Mangaluru. Practitioners report lead time reductions of 22–34% for bulk commodities shipped via water versus road, with inventory carrying costs down 17% for firms using barge-rail intermodal corridors. As one logistics manager noted:
“Waterways are no longer a backup option — they’re our primary channel for coal, limestone, and food grains between eastern and northern India.” — Rajiv Mehta, Head of Logistics, JSW Steel
Source: www.drishtiias.com
Compiled from international media by the SCI.AI editorial team.
