Report Overview

The growing demand for environment friendly transportation, trade, and logistics, the government’s supportive initiatives and investments, and a heightened focus on sustainability and lower carbon emissions are expected to drive India Waterway Mobility Market during the forecast period between 2025 and 2031.

India Waterway Mobility Market – Industry Trends & Forecast Report, 2031

India Waterway Mobility Market size was estimated at USD 444.23 million in 2024. During the forecast period between 2025 and 2031, India Waterway Mobility Market size is projected to grow at a CAGR of 6.45% reaching a value of USD 688.07 million by 2031. Prominent drivers of the market include substantial growth in freight transportation via inland waterways over the past decade. The number of operational National Waterways has significantly increased, enhancing connectivity and facilitating faster cargo movement. Key initiatives include infrastructure development, such as multi-modal terminals, floating jetties, and fairway maintenance on major waterways like the Ganga, Brahmaputra, and West Coast Canal. Policy measures like the Cargo Promotion Scheme, cargo aggregation hubs, and integration with ports aim to improve efficiency. Additionally, efforts to shift PSU cargo to waterways, promote river cruise tourism, and strengthen Indo-Bangladesh trade routes further support market expansion.

Waterway Mobility – Overview

Waterway Mobility refers to the movement of people, goods, and services via inland and coastal waterways, including rivers, canals, and lakes. It encompasses various modes of transportation, such as cargo shipping, passenger ferries, and recreational boating. Waterway mobility plays a crucial role in reducing congestion on roads, lowering transportation costs, and promoting eco-friendly logistics. It also integrates with other transport networks like ports and railways, enhancing multimodal connectivity for trade, tourism, and urban mobility.

India Waterway Mobility Market

Growth Drivers

Sustainability and Lower Carbon Emissions

Inland waterways have emerged as a sustainable and environmentally friendly solution to address India's rising logistics needs. These waterways, which date back to the pre-independence era, offer a cost-effective and energy-efficient alternative to traditional road and rail transport. With their ability to significantly reduce logistics costs and carbon emissions, inland waterways are playing a critical role in the country’s efforts to promote sustainable growth. Transporting goods via waterways can reduce fuel consumption by over 50%, making it a "green mode of transport" that mitigates the environmental impact of logistics. As the demand for eco-friendly transportation solutions grows, the Indian government has implemented initiatives like the Sagarmala Scheme to expand the use of waterways and reduce dependence on road-based cargo movement. These projects are designed to minimize carbon emissions while enhancing the efficiency of trade routes. The use of inland waterways for the transport of EXIM cargo, coupled with emerging opportunities in containerized cargo, underscores the potential for waterways to drive sustainable logistics growth. Decarbonization efforts within the sector, including the introduction of fully electric vessels such as the solar-powered ferry boat Aditya in Kerala, highlight the shift towards alternative fuels and renewable energy sources. By focusing on electrification and reduced fuel consumption, India is aiming to transform its waterway mobility sector into a leading contributor to its climate goals. This transition to greener technologies is crucial as the nation strives to meet its environmental commitments while fostering economic growth. The push towards lower carbon emissions through inland waterway transport presents a unique opportunity for India to enhance its logistics infrastructure sustainably. As the sector continues to evolve, increased cargo movement through these eco-friendly routes is expected to contribute significantly to India’s broader decarbonization efforts.

Challenges

Seasonal and Weather Constraints

India Inland Waterway Mobility Market, despite its potential for cost-effective and sustainable transport, faces significant challenges due to seasonal and weather-related constraints. Many rivers in India experience fluctuating water levels, making them navigable only during certain seasons. Monsoons often lead to excessive water flow, causing strong currents and flooding, which disrupt cargo and passenger movement. Conversely, in dry seasons, reduced water levels hinder vessel navigation, affecting the efficiency of transport operations. Additionally, extreme weather conditions, such as cyclones and storms, pose risks to coastal and inland water transport, leading to delays and increased operational costs. Addressing these challenges requires investment in dredging, river basin management, and resilient infrastructure to ensure year-round navigability and minimize disruptions to trade and logistics.

Impact of Escalating Geopolitical Tensions on India Waterway Mobility Market

Escalating geopolitical tensions could significantly impact the growth of India Waterway Mobility Market by disrupting trade routes, increasing fuel costs, and affecting cross-border logistics. Strained international relations may lead to trade restrictions, impacting cargo movement through inland and coastal waterways. Rising fuel prices due to global conflicts further escalate operational costs, making water transport less competitive. Additionally, geopolitical instability can hinder foreign investments in infrastructure projects, slowing the expansion of port connectivity and inland navigation systems. Ensuring resilient policies, strengthening domestic supply chains, and enhancing diplomatic ties are crucial to mitigating these risks and sustaining the growth of India's waterway transport sector.

India Waterway Mobility Market

Segmental Coverage

India Waterway Mobility Market – By Vessel Type

Based on vessel type, India Waterway Mobility Market is divided into Water Taxis, Cruise Ships, Cargo Ships, Container Ships, and Tankers segments. The cargo ships segment holds the largest share of India Waterway Mobility Market by vessel type. It is driven by the extensive transportation of bulk commodities such as coal, food grains, cement, fertilizers, and forest products. National Waterways, including NW-1, NW-2, and NW-4, facilitate large-scale cargo movement, enhancing trade efficiency and reducing logistics costs. With increasing government initiatives to boost inland water transport, cargo ships continue to play a crucial role in strengthening India’s supply chain network. As demand for cost-effective and sustainable freight transport rises, the dominance of cargo ships is expected to grow, further reinforcing their significance in the country’s waterway mobility sector.

India Waterway Mobility Market – By Propulsion

India Waterway Mobility Market by propulsion is divided into Conventional, Electric, Hydrogen, and Hybrid segments. The electric segment holds the highest share in India Waterway Mobility Market by propulsion. The adoption of electric propulsion in India's waterway mobility market is gaining significant momentum, with the government and private sector investing heavily in green alternatives. The Ministry of Ports, Shipping, and Waterways (MoPSW) has allocated INR 45,000 crore for river cruise tourism, with INR 10,000 crore dedicated to cruise terminal infrastructure by 2047. Electric propulsion has already been implemented in inland waterways, such as National Waterways-3 (Kochi), where 12 electric catamaran boats are operational, with plans to deploy an additional 66 vessels under the Kochi Water Metro. The Inland Waterways Authority of India (IWAI) is also procuring eight electric catamaran vessels for key locations, including Ayodhya, Varanasi, Mathura, and Guwahati. Furthermore, MoPSW aims to introduce 1,000 green-fuel-powered vessels (including electric and green hydrogen) within the next decade, with 300–400 electric vessels expected to be operational in the next five years. India’s first electric ferry pilot project in the Sundarbans, launched by WWF-India, demonstrates the viability of electric boats in climate-sensitive regions. However, infrastructure challenges, such as reliable charging facilities, remain a concern. With the increasing shift toward sustainable propulsion systems, electric vessels are expected to dominate the India Waterway Mobility Market, replacing traditional diesel-powered boats and contributing to a greener transport ecosystem.

India Waterway Mobility Market – By Industry Vertical

On the basis of industry vertical, India Waterway Mobility Market is segmented into Consumer & Retail, Oil & Gas, Energy  Top of FormBottom of Form& Mining, and other industry verticals segments.

India Waterway Mobility Market – By Region

The in-depth research report on India Waterway Mobility Market covers the market in the country’s major regions: North India, South India, East India, and West India regions.

Competitive Landscape

Major players operating in India Waterway Mobility Market include Adani Ports and Special Economic Zone Limited (APSEZ), Cochin Shipyard Limited (CSL), Shipping Corporation of India (SCI), Inland & Coastal Shipping Ltd (ICSL), Kochi Water Metro, Inland Waterways Authority of India (IWAI), SICAL Connect Limited, CGU Logistic Private Limited, and CLS Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2025 - Reliance Industries (RIL) signed an MoU with Vadhvan Port Project Limited (VPPL) to develop a liquid jetty and 50 acres at Vadhvan port under a PPP model, investing INR 645 crore by 2030. The port, India’s 13th major container hub, aims to enhance cargo capacity and efficiency. Additionally, Hudco pledged INR 25,000 crore for port infrastructure. With ongoing investments, Vadhvan Port is set to become a key maritime hub, boosting India’s trade potential. The Jawaharlal Nehru Port Authority (JNPA) is also expanding, adding capacity to strengthen India's logistics and supply chain infrastructure.

• In December 2024 - The Indian Union Government launched the 'Jalvahak' scheme to promote cargo transport via inland waterways, aiming to reduce logistics costs and ease congestion on roads and railways. Union Minister flagged off three cargo vessels and inaugurated fixed-schedule services to enhance trade efficiency. The scheme offers up to 35% reimbursement on operating costs for cargo transported over 300 km and is valid for three years. With a projected investment of INR 95.4 crore by 2027, it aims to facilitate 800 million ton-kilometres of modal shift, supporting India's goal of achieving 200 million tons of waterway cargo by 2030.

Scope of the Report

By Vessel Type

• Water Taxis

• Cruise Ships

• Cargo Ships

• Container Ships

• Tankers

By Propulsion

• Conventional

• Electric

• Hydrogen

• Hybrid

By Industry Vertical

• Consumer & Retail

• Oil & Gas

• Energy & Mining

• Others

By Region

• North India

• South India

• East India

• West India