India to Double Coastal and Waterway Freight Share to 12% by 2047

Union Minister Sarbananda Sonowal announces ambitious goals to double waterway freight share and boost cruise tourism under new missions.

Ravi Pandey3 November 20263 min read0 viewsBusiness
India to Double Coastal and Waterway Freight Share to 12% by 2047

In a major push to overhaul India's logistics landscape, Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal has announced an ambitious target to double the coastal and waterway freight share in the country's total freight movement. The government aims to increase this share from the current 6 per cent to 12 per cent by the year 2047.

Speaking at a meeting of the ministry's Consultative Committee in Puri, Odisha, Sonowal detailed a strategic roadmap to transform India's coastlines and rivers into powerful engines of economic growth. This vision is anchored by two primary initiatives: the Coastal Cargo Promotion Scheme and the Cruise Bharat Mission.

Boosting Cargo and Cruise Tourism

The Minister highlighted a significant upward trajectory in the maritime sector over the last 12 years. Under the leadership of Prime Minister Narendra Modi, cargo handled at Indian ports has surged from 74 million metric tonnes to 177 million metric tonnes, marking a growth of approximately 140 per cent.

The Coastal Cargo Promotion Scheme

Introduced in the Union Budget 2026-27, this scheme is designed to shift more goods from roads and rails to the sea. To achieve this, the government will provide incentives to:

  • Cargo owners
  • Coastal vessel operators
  • Multimodal transport operators who integrate ships, rail, and road transport

The Cruise Bharat Mission

Launched in September 2024, the Cruise Bharat Mission seeks to put India on the global map for luxury and leisure travel. The mission has set a bold target of attracting one million sea cruise passengers by March 2029. This is a significant jump from the 462,661 ocean cruise passengers recorded in the 2025-26 fiscal year.

Infrastructure Milestones in Odisha

The shores of Odisha are set for a massive upgrade with the development of the Puri International Cruise Terminal. This project, estimated to cost Rs 1,500 crore, will be executed by the Paradip Port Authority (PPA) in collaboration with the Odisha government.

Furthermore, the Minister pointed to the development of National Waterway No. 5 in Odisha. With an estimated investment of over Rs 13,000 crore, this waterway will serve as a critical link connecting industrial and mining hubs like Talcher and Kalinganagar to the ports on the east coast.

Economic and Environmental Impact

The shift toward water-based transport is not just about efficiency but also about sustainability and employment. According to Minister Sonowal, the combined efforts of the Coastal Cargo Promotion Scheme and the Cruise Bharat Mission are expected to:

  • Generate more than 560,000 new jobs, including 400,000 specifically from the cruise sector.
  • Save approximately 16 million metric tonnes of carbon dioxide emissions, reducing the environmental footprint of Indian logistics.

Expanding the River Network

Beyond the coast, India is aggressively expanding its inland waterways. Currently, 20 river cruise circuits are operational across 16 National Waterways, supported by 143 operational river cruise terminals and landing points. The government has already identified an additional 51 circuits for phased development.

The meeting, which was also attended by Minister of State Shantanu Thakur and eight Members of Parliament, concluded with a shared commitment toward building a competitive and sustainable maritime ecosystem for a "Viksit Bharat."

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