Discuss the potential of Inland Water Transport in reducing India's logistics costs. Examine the gap between the number of declared and operational National Waterways.

The National Waterways Act, 2016 declared 111 inland waterways as National Waterways (NWs), spanning about 20,187 km across 23 states and 4 UTs [1][2]. Yet only 32 are operational for cargo and passenger movement, exposing a wide gap between statutory declaration and functional capacity [1].

Potential of IWT in cutting logistics costs

• Cost and fuel efficiency: waterways are the cheapest surface mode per tonne-km; one litre of fuel moves far more freight by barge than by road or rail, directly lowering India's logistics cost as a share of GDP.
• Scale already demonstrated: cargo on NWs reached a record 145.5 million tonnes in FY2024-25, with the government targeting 156 MTPA by 2026 and 52 operational NWs in five years [3].
• Multimodal integration: NWs feed into PM Gati Shakti, Sagarmala and the National Logistics Policy, decongesting road corridors and easing first-and-last-mile bottlenecks.
• Beyond cargo: cruise vessels rose from 3 (2013-14) to 25 (2024-25) across 17 circuits on 13 NWs, aided by the 4,000-km Varanasi–Dibrugarh corridor with 129 terminals [1].
• Green dividend: lowest carbon footprint per tonne-km among freight modes, supporting India's net-zero and SDG-9 commitments.

Why the declared–operational gap persists

• Hydrological limits: many declared stretches lack assured year-round depth and width; seasonal flow and siltation render them non-navigable.
• Selective functionality: as of November 2025, cargo runs on 29 NWs, cruise on 15 and passenger services on 23, but only 11 support all three modes [1].
• Infrastructure and viability deficits: sparse terminals, jetties and night-navigation aids; thin cargo volumes deter private investment.
• Coordination burden: execution spans multiple states and agencies under the IWAI, slowing land acquisition and clearances [2].

The gap reflects not policy failure but the difference between legal declaration and engineering readiness. Prioritising depth assurance, terminal development and private participation on commercially viable stretches — rather than declaring fresh waterways — can convert this statutory network into a genuine logistics asset, advancing the Act's promise of shipping-led, low-cost and low-carbon connectivity.