India is placing a greater emphasis on development of its inland waterways sector, with the National Waterway-1 project expected to generate an economic boost of INR 1,000 crore over the next five years. In addition to trade benefits, the sector will help to enhance local communities and passenger facilities while driving skills development and public/private sector capabilities.
The push for inland water transport supports India’s goals for sustainable growth, particularly in outlying regions, and its efforts to reduce its carbon footprint. Using one liter of fuel, inland water transport can move 105 tonne-km, compared to 85 tonne-km by rail and 24 tonne-km by road, according to a World Bank study.
Carbon emissions are also lower per tonne-km, at 32-36 gm for container vessels compared to 51-91 gm for road transport vehicles. To help make the sector even more environment-friendly, India will leverage renewable energy to power its inland waterways. The inland waterways sector encompasses river systems, canals, backwaters, creeks and tidal inlets, offering a more cost-effective mode of transportation than railways or roadways. The Indian government has been revitalising the sector since 2014, reversing years of neglect. Cargo movement in the sector reached an all-time high of 108.79 million tonne in FY 2021-22, representing 30.12 percent y-o-y increase from the previous fiscal year.
Varanasi, one of India’s oldest living cities, has emerged as a key platform for this transformation. India is pursuing a number of steps to help transform its economy through this environment-friendly and economical mode of transportation.
The country is prioritising the development of 23 national waterways, expanding regional connectivity with neighbouring countries such as Bangladesh, Nepal, Myanmar and Bhutan, developing terminal infrastructure for Ro-Ro and ferry services, and implementing policy interventions to incentivise the development of the inland waterways sector. With the expansion of the sector, India is striving to become self-reliant. The country aims to leverage its inland waterways to promote sustainable economic growth and provide its citizens with an eco-friendly mode of transportation.
