Why in the News?

• Chief Economic Adviser Anantha Nageswaran highlighted that inland waterways are strengthening India’s logistics resilience amid global supply disruptions caused by the West Asian crisis.

What’s in Today’s Article?

• Inland Waterways (Meaning, Governing Body, Major Operational National Waterways, Significance, etc.)
• News Summary

About Inland Waterways in India

• Inland water transport (IWT) refers to the movement of goods and passengers through navigable rivers, canals, backwaters, and creeks using boats and vessels.
• It is one of the most efficient and environmentally friendly modes of transport, complementing road and rail networks in India’s multimodal logistics strategy.
• India has an extensive network of over 14,500 km of navigable waterways, of which 111 waterways have been declared as National Waterways (NWs) under the National Waterways Act, 2016.
• The Inland Waterways Authority of India (IWAI), established in 1986, is the nodal agency for developing and maintaining these national waterways.
• Major operational National Waterways include:

• NW-1: Ganga-Bhagirathi-Hooghly River system from Prayagraj to Haldia
• NW-2: Brahmaputra River in Assam
• NW-3: West Coast Canal in Kerala
• NW-4 & NW-5: Connecting river systems in Andhra Pradesh, Odisha, and Tamil Nadu

• These waterways are being developed with modern terminals, navigational aids, and vessel support services to facilitate steady cargo and passenger operations.

Importance of Inland Waterways

• Cost Efficiency: Water transport has the lowest per-tonne-per-kilometre cost, saving fuel and reducing logistics expenditure.
• Environmental Benefits: It generates lower carbon emissions compared to road and rail transport.
• Decongests Roads and Railways: By shifting bulk cargo movement to waterways, pressure on other modes is reduced.
• Boosts Trade and Connectivity: Enhances access to markets for agricultural and industrial goods, especially in hinterland regions.
• The government’s Jal Marg Vikas Project (JMVP) on NW-1 and several regional initiatives under the Sagarmala and PM Gati Shakti programmes aim to integrate inland waterways with ports, rail, and road connectivity, thereby strengthening India’s logistics ecosystem.

News Summary

• India’s Chief Economic Adviser (CEA) underscored the growing role of inland waterways in fortifying India’s logistics resilience amid ongoing global supply chain disruptions triggered by the West Asian conflict.

Inland Waterways: A Key Pillar of Resilience

• Describing inland water transport as one of the most gratifying developments of recent years, the CEA noted that cargo movement through inland waterways increased from about 18 million tonnes in 2013-14 to 146 million tonnes, registering a compounded annual growth rate (CAGR) of 21%.
• He explained that this rapid growth has helped India build a more self-reliant and stable logistics network, insulating domestic cargo movement from the volatility of global shipping lanes affected by geopolitical tensions.

Mitigating the Logistics Shock of Global Conflicts

• CEA Nageswaran described the ongoing West Asian crisis as not only an energy price shock but also a logistics shock.
• Disruptions in international maritime routes have caused elevated freight and insurance costs, which in turn affect the movement and pricing of goods across the world.
• In this context, India’s inland waterways serve as a relatively insulated channel for domestic cargo operations.
• By facilitating riverine transport and reducing dependence on international maritime routes, they help contain logistics costs and maintain supply chain stability.

Shift in Government Spending and Infrastructure Development

• The CEA pointed out that the success of inland waterways is part of India’s broader infrastructure transformation.
• Government spending has evolved from focusing mainly on roads and railways to creating a multimodal logistics network that includes national waterways, ports, and dedicated freight corridors.
• This shift has addressed long-standing logistics bottlenecks and contributed to sustaining economic growth above 7%, while keeping inflation moderate in the post-pandemic period.

Need for Resilient and Redundant Systems

• The CEA emphasised that global disruptions have made it essential to build redundancy and resilience into India’s logistics system instead of prioritising cost efficiency alone.
• With energy imports, including crude oil, LPG, and natural gas, remaining exposed to global volatility, domestic alternatives like inland waterways offer much-needed stability.
• He also remarked that “logistics is one of the key channels through which external shocks transmit into the economy,” and that improved internal connectivity can mitigate these risks.

Turning Challenges into Opportunities

• Framing the current global challenges as a strategic opportunity, CEA encouraged businesses and policymakers to focus on turning “compulsions into convictions and opportunities.”
• He cited inland waterways as a striking example; once underutilised, they are now emerging as a vital component of India’s transport mix and economic resilience strategy.