India’s inland waterway cargo traffic reached 218 million metric tonnes in the 2025–26 financial year, exceeding the 200-million-tonne target set under Maritime India Vision 2030. The milestone reflects the sector’s expansion over the past decade, as the government continues to develop navigation infrastructure, improve operational information and encourage cargo owners to consider waterway-based freight solutions. According to government figures highlighted on 16 October 2026, inland waterway cargo increased from 29 million tonnes in 2014–15 to 218 million tonnes in 2025–26. The latest volume is 18 million tonnes above the 2030 benchmark, representing a 9% increase over the target. The next challenge for the sector is to translate higher cargo volumes into dependable, commercially competitive freight services that can connect waterways with road and rail networks. Inland Waterway Network Continues to Expand: India has 111 National Waterways spanning 20,187 kilometres across 23 states and four Union Territories. However, 32 waterways, covering 5,155 kilometres, were operational as of March 2026. The distinction between designated and operational waterways remains important for cargo owners and logistics providers. Commercial services require navigable channels, suitable terminals, reliable vessel operations and effective connections to production and consumption centres. The Union Budget 2026–27 announced plans to operationalise 20 additional National Waterways over five years. The initiative forms part of the broader effort to expand the availability of inland water transport and strengthen its role in the national freight network. Longer-term policy ambitions include increasing inland water transport’s share of freight movement from approximately 2% to 5% and reaching 500 million tonnes of cargo by 2047. Navigation Information Becomes Critical to Operations: As cargo volumes rise, navigation reliability and access to timely operational information are becoming increasingly important. By September 2026, regular surveys monitoring the deepest navigable channel covered 22 National Waterways. Depending on local requirements, surveys are conducted weekly, fortnightly or monthly to assess available depth and support decisions on vessel draft and cargo loading. Electronic Navigational Charts had also been prepared for 18 operational and tidal waterways. Digital platforms, including PANI and IWAI Vessel Tracker, provide navigation-related information to operators. Access to more reliable data can help vessel operators plan voyages, determine loading conditions and manage schedules. However, digital information must be supported by physical infrastructure and fairway maintenance to ensure that waterways remain usable under changing conditions. For freight customers, the effectiveness of these measures will depend on whether they improve service consistency, vessel utilisation and the predictability of cargo movements. Jalvahak Scheme Seeks to Encourage Cargo Shift: Financial incentives are another element of the government’s strategy to increase waterway utilisation. Launched in December 2024, the Jalvahak scheme provides incentives of up to 35% of eligible operating expenditure for the waterway leg of qualifying cargo movements. The scheme covers National Waterways 1, 2 and 16, along with eligible routes under the Indo-Bangladesh Protocol. A separate component supports scheduled services operated by Inland and Coastal Shipping Limited, with funding from the Inland Waterways Authority of India (IWAI). The scheme addresses a key challenge in multimodal logistics: while water transport may offer advantages over certain long-distance road movements, additional handling, terminal charges and connecting transport can affect the overall cost of delivery. The incentive excludes first- and last-mile expenditure. Cargo owners must therefore evaluate the full logistics chain, including terminal handling, connecting road or rail transport, sailing frequency, transit time and delivery requirements. The commercial viability of waterway freight ultimately depends on the cost and reliability of the complete journey rather than the waterborne segment alone. Infrastructure Supports Multimodal Freight Movement: Infrastructure developed under the Jal Marg Vikas Project provides part of the foundation for cargo operations along National Waterway 1. Key developments include multimodal terminals at Varanasi, Sahibganj and Haldia, an intermodal terminal at Kalughat and a navigation lock at Farakka. These facilities are intended to support cargo handling and connect river transport with inland logistics networks. Private investment is also being encouraged to expand terminal infrastructure. The National Waterways (Construction of Jetties/Terminals) Regulations, 2025 established a framework intended to facilitate the development of jetties and terminals by companies, public bodies and joint ventures. The combination of infrastructure investment, navigation support and cargo incentives is intended to create more opportunities for businesses to incorporate inland waterways into their transport strategies. Commercial Competitiveness Remains the Next Test: Crossing the 200-million-tonne target represents a significant milestone in the expansion of India’s inland waterway cargo business. Sustaining this growth will require more than increasing aggregate tonnage. For manufacturers, exporters, importers and logistics providers, key considerations include predictable transit times, dependable vessel schedules, adequate terminal capacity and effective road and rail connections. Cargo volumes also need to be assessed alongside the distances travelled and the economics of individual routes. Tonnage measures the quantity of cargo handled, while tonne-kilometres account for both cargo weight and distance, offering a different perspective on freight activity. As additional waterways become operational and supporting infrastructure develops, the sector’s progress will increasingly depend on its ability to secure regular commercial cargo commitments. For India’s logistics industry, the priority is now to turn the expansion in inland waterway traffic into reliable, cost-effective and integrated freight services that can support long-term supply chain development. Follow CARGOCONNECT for more such updates