India targets 12% waterway freight share by 2047 as incentives roll out

The initiatives coul create more than 560,000 jobs and cut emission.

India plans to double the share of freight moved by coastal and inland waterways to 12% by 2047, as the government prepares incentives for cargo owners, coastal vessel operators, and multimodal transport operators under its Coastal Cargo Promotion Scheme.

Announced in the 2026-27 budget, the scheme will incentivise cargo owners and operators that move goods using more than one mode of transport, such as ships, rail and road.

The Cruise Bharat Mission, launched in September 2024, separately aims to attract one million sea cruise passengers and create 400,000 jobs by March 2029.

Together, the two initiatives are expected to create more than 560,000 jobs and save 16 million metric tons of carbon dioxide emissions, Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal said.

“[The schemes] will move more cargo by sea and bring more visitors to our shores, creating jobs and protecting the environment,” Sonowal said.

Coastal cargo at Indian ports has increased from 74 million metric tons to 177 million metric tons over the past 12 years, an increase of about 140%, according to Sonowal.

India recorded 462,661 ocean cruise passengers and 212 vessel calls in fiscal year 2025-26, representing a 5.5-fold increase in passenger traffic and a 2.1-fold rise in vessel calls since 2013-14.

Twenty river cruise circuits across 16 National Waterways are already operating, whilst 51 more have been identified for phased development. Sonowal said 143 river cruise terminals and landing points are operational.

The government is also developing National Waterway No. 5 in Odisha, estimated to cost more than INR13,000 crore. The waterway will link industrial and mining centres, including Talcher and Kalinganagar, with ports on the east coast.

Sonowal also announced plans for the Puri International Cruise Terminal, which will be developed by Paradip Port Authority in partnership with the Odisha government at a likely cost of INR1,500 crore.