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2 Feb 2026·Source: The Hindu
3 min
EconomyPolity & GovernanceNEWS

Budget 2026: ₹10,000 Cr Boost for Inland Waterways, Containerization

Budget focuses on coastal, inland shipping, container manufacturing to boost cargo.

Budget 2026: ₹10,000 Cr Boost for Inland Waterways, Containerization

Photo by Abdul Hameed

The Budget includes proposals to boost coastal shipping and inland shipping. The government aims to increase the share of inland and coastal shipping in total cargo carried from 6% to 12%. The Budget proposes establishing new Dedicated Freight Corridors connecting Dakuni to Surat and operationalizing 20 new national waterways, starting with the Brahmani-Mahanadhi NW 5. A budgetary allocation of ₹10,000 crore over five years is proposed to create a competitive container manufacturing ecosystem.

Key Facts

1.

Inland shipping target: 6% to 12% cargo share

2.

Container manufacturing allocation: ₹10,000 crore

UPSC Exam Angles

1.

GS Paper 3 (Economy): Infrastructure development, transportation, logistics

2.

Connects to: Government policies, economic growth, sustainable development

3.

Potential question types: Statement-based, analytical

Visual Insights

More Information

Background

The development of inland waterways in India has a long history, dating back to ancient times when rivers were primary transportation routes. However, with the advent of railways and roadways during the British colonial era, inland water transport (IWT) gradually declined. The Inland Waterways Authority of India (IWAI) was established in 1985 to regulate and develop IWT. Post-independence, various committees and studies highlighted the potential of IWT for cargo and passenger movement. The National Waterways Act, 2016, declared several waterways as national waterways, aiming to integrate them into the transportation network. This act provides the legal framework for the development and regulation of these waterways. The development of waterways also aligns with the broader goal of improving logistics efficiency and reducing transportation costs. Coastal shipping also plays a crucial role in India's maritime sector. India has a coastline of approximately 7,500 kilometers, offering significant opportunities for coastal cargo movement. The Sagarmala Programme, launched in 2015, aims to promote port-led development and enhance coastal shipping infrastructure. This program focuses on port modernization, connectivity enhancement, and coastal community development. The development of coastal shipping is also linked to the promotion of containerization and efficient cargo handling.

Latest Developments

The government has been actively promoting inland waterways and coastal shipping through various policy initiatives and infrastructure development projects. The focus is on increasing the share of IWT in the overall transportation mix. The development of new national waterways, as mentioned in the budget, is a key step in this direction. The Jal Marg Vikas Project is aimed at enhancing the navigability of the Ganga River (National Waterway-1). Recent trends indicate a growing interest in containerization as a means of efficient cargo handling. The government's push for domestic container manufacturing is intended to reduce dependence on imports and create a competitive ecosystem. This initiative aligns with the broader objective of Atmanirbhar Bharat (self-reliant India). The development of dedicated freight corridors (DFCs) is also expected to improve connectivity and reduce congestion on existing railway lines. Looking ahead, the government aims to further integrate inland waterways and coastal shipping with other modes of transportation, such as railways and roadways. This integrated approach is crucial for achieving seamless multimodal connectivity and reducing logistics costs. The target of increasing the share of inland and coastal shipping to 12% reflects the government's commitment to promoting sustainable and efficient transportation solutions.

Frequently Asked Questions

1. What is the main focus of the Budget 2026 regarding inland waterways and containerization?

The Budget 2026 aims to boost coastal and inland shipping to increase the share of inland and coastal shipping in total cargo carried from 6% to 12%. It also proposes a ₹10,000 crore allocation for container manufacturing.

2. What are the key numbers to remember from the Budget 2026 related to inland waterways for the UPSC Prelims?

Remember the current inland shipping share (6%), the targeted inland shipping share (12%), and the container manufacturing allocation (₹10,000 crore). These figures are important for factual MCQs.

Exam Tip

Focus on percentage increase and budgetary allocations for direct questions.

3. What is the historical background of inland waterways development in India?

Inland waterways were primary transportation routes in ancient India. However, their importance declined with the rise of railways and roadways during British rule. The Inland Waterways Authority of India (IWAI) was established in 1985 to regulate and develop IWT.

4. Why is the development of inland waterways important for India's economy?

Developing inland waterways can reduce transportation costs, decrease reliance on roadways and railways, and promote more environmentally friendly transportation options. It can also boost regional development and create employment opportunities.

5. What are the recent developments in inland waterways and coastal shipping?

The government is actively promoting inland waterways and coastal shipping through policy initiatives and infrastructure projects. The development of new national waterways, as mentioned in the budget, is a key step. The Jal Marg Vikas Project aims to enhance navigation capacity.

6. What are the potential benefits and challenges of increasing container manufacturing in India?

Benefits include reduced import dependence, job creation, and export opportunities. Challenges include competition from established manufacturers, infrastructure gaps, and the need for skilled labor.

7. How does the Budget 2026 proposal impact the common citizen?

Improved logistics and transportation efficiency can lead to lower prices for goods and services. Increased economic activity and job creation in the inland waterways and container manufacturing sectors can also benefit citizens.

8. What is the significance of Dedicated Freight Corridors (DFCs) mentioned in the context of inland waterways?

The Budget proposes establishing new Dedicated Freight Corridors connecting Dakuni to Surat. DFCs improve the efficiency of freight movement, reducing congestion and transportation time, which complements the development of inland waterways.

9. Which National Waterway is specifically mentioned for operationalization in the Budget 2026?

The Brahmani-Mahanadhi NW 5 is specifically mentioned for operationalization.

10. What are the potential environmental benefits of shifting cargo transport from roadways to inland waterways?

Inland waterways are generally more fuel-efficient and produce fewer emissions per ton-kilometer compared to roadways. This shift can contribute to reducing air pollution and greenhouse gas emissions.

Practice Questions (MCQs)

1. Consider the following statements regarding the National Waterways Act, 2016: 1. It declared 111 waterways as National Waterways. 2. The Act empowers the Central Government to regulate and develop these waterways for navigation. 3. The Brahmani-Mahanadi NW 5 is one of the waterways declared under this Act. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

All three statements are correct. Statement 1 is correct: The National Waterways Act, 2016 declared 111 waterways as National Waterways. Statement 2 is correct: The Act empowers the Central Government to regulate and develop these waterways for navigation. Statement 3 is correct: The Brahmani-Mahanadi NW 5 is indeed one of the waterways declared under this Act and is slated for operationalization.

2. The recent budget proposes a significant boost to inland waterways and containerization. In this context, consider the following statements: 1. The government aims to increase the share of inland and coastal shipping in total cargo carried from 6% to 12%. 2. A budgetary allocation of ₹10,000 crore is proposed over five years to boost container manufacturing. 3. The Sagarmala Programme is exclusively focused on developing inland waterways. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statements 1 and 2 are correct as per the budget proposals. Statement 3 is incorrect because the Sagarmala Programme focuses on port-led development and coastal shipping, not exclusively on inland waterways. It aims to modernize ports, enhance connectivity, and develop coastal communities.

3. Which of the following is the primary objective of the Jal Marg Vikas Project?

  • A.To develop a network of high-speed rail corridors
  • B.To enhance the navigability of the Ganga River (National Waterway-1)
  • C.To promote tourism in coastal areas
  • D.To improve road connectivity in hilly regions
Show Answer

Answer: B

The Jal Marg Vikas Project is aimed at enhancing the navigability of the Ganga River (National Waterway-1) for safer and more efficient transportation of goods and passengers. This involves dredging, construction of terminals, and other infrastructure improvements.

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