Inland Waterways: A Key Solution to Strengthening Supply Chains, Says CEA Anantha Nageswaran.

The recent remarks by V Anantha Nageswaran, Chief Economic Advisor, highlight the increasing significance of inland waterways in enhancing India’s logistics resilience amid disruptions in global supply chains due to the ongoing conflict in West Asia. The volume of cargo transported by inland water transport has surged from approximately 18 million tonnes in 2013-14 to 146 million tonnes, demonstrating a compounded annual growth rate of 21%. This strategic focus on developing multimodal transport systems, particularly inland waterways, is being positioned as a vital response to the compounded logistics shocks exacerbated by geopolitical tensions, particularly affecting freight and insurance costs.

This shift towards inland waterways has immediate implications for the common citizen and the broader market. By providing a more stable and efficient means of domestic cargo transport, it reduces the pressure on overburdened road and rail networks, which are crucial for everyday logistics. For individuals, this can translate to improved availability of goods and potentially lower prices, as transportation costs become less susceptible to international price volatility. For businesses, the enhanced logistics framework reduces operational uncertainties, allowing for improved planning and cost management, ultimately supporting economic growth and stability.

The long-term outlook suggests that the government and RBI may further invest in enhancing logistics infrastructure to promote redundancy and resilience. This strategic pivot towards robust internal transport networks, including ports and multimodal logistics hubs, indicates a commitment to ensuring sustained economic growth while mitigating the impacts of external shocks. As domestic transport alternatives like inland waterways emerge as crucial players in India’s logistics framework, ongoing investment and policy support will be necessary to solidify their role. In this context, re-evaluating logistics strategies to embrace innovative transport solutions may be essential for sustaining India’s economic momentum in an increasingly unpredictable global landscape.