Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal has said that the Union Budget has provided a decisive thrust to India’s economic transformation by accelerating reforms, strengthening growth foundations and firmly positioning the maritime sector as a strategic pillar in achieving the vision of Viksit Bharat.
Addressing the Budget’s impact on the ports shipping and waterways sector, Sarbananda Sonowal said the proposals reflect the Government’s commitment to the three Kartavyas of accelerating and sustaining economic growth, fulfilling aspirations by building capacity, and ensuring inclusive development in line with Sabka Saath Sabka Vikas. He said the Budget enhances productivity, builds resilience against global volatility and ensures that every sector region and community has meaningful opportunities to contribute to national growth.
The Union Minister said the Budget has clearly recognised the maritime sector as a key enabler of trade competitiveness logistics efficiency and long-term economic resilience. He noted that the measures announced create an enabling ecosystem for stakeholders transporters and industry partners to expand capacity improve efficiency and grow sustainably. He expressed gratitude to Union Finance Minister Nirmala Sitharaman for presenting her ninth consecutive Union Budget and described it as a symbol of policy continuity reform stability and women empowerment.
A major highlight of the Budget is the announcement of a Container Manufacturing Assistance Scheme with an outlay of ₹10,000 crore over the next five years. The scheme aims to establish a globally competitive container manufacturing ecosystem in India to support the rapidly growing containerised cargo segment which accounts for nearly two thirds of the value of global trade. Under the initiative India is targeting an annual domestic manufacturing capacity of around one million TEUs over the next decade.
The scheme is expected to create a market opportunity of nearly ₹1.07 lakh crore reflecting a multiplier impact of around eight times the government support. It is projected to generate about 3,000 direct jobs and over 50,000 indirect jobs while catalysing ancillary industries such as corner castings specialised steel wooden frames and water based paints. The initiative will significantly reduce dependence on imported empty containers currently estimated at nearly two million units and strengthen national supply chain resilience.
Sarbananda Sonowal said the container manufacturing scheme represents a transformative step in India’s maritime growth journey. He added that together with the Bharat Container Shipping Line the initiative marks a decisive move towards maritime self reliance and a more resilient logistics ecosystem.
The Union Budget has also provided fresh momentum to India’s inland waterways transformation. The Government will operationalise 20 new National Waterways over the next five years further expanding the national network and enabling greener and more cost effective cargo movement. Sarbananda Sonowal recalled that the number of national waterways has expanded from five prior to 2014 to 111 under the National Waterways Act. Cargo movement on inland waterways has increased from 18.1 million metric tonnes in 2013–14 to 145.5 million metric tonnes in 2024–25 representing nearly 700 percent growth with a compound annual growth rate of about 21 percent. The operational length of waterways has increased from 2,716 km to more than 5,155 km easing congestion on road and rail networks.
An important announcement in the Budget is the focused development of National Waterway 5 on the Mahanadi river system in Odisha. This corridor will connect mineral rich areas of Talcher and Angul with major industrial centres such as Kalinga Nagar and ports at Paradeep and Dhamra. Major terminals will be developed at Kakudi Kurunti and Pankapal with coal coking coal and limestone as the principal cargo. The corridor has an estimated cargo potential of around 10 million tonnes by 2032 rising to 20 million tonnes by 2047 with an investment of about ₹13,000 crore.
To strengthen capacity building the Budget has announced the establishment of training institutes as Regional Centres of Excellence for skill development in the inland waterways sector. Training centres will be set up in Kolkata and Varanasi while a dedicated ship repair ecosystem catering to inland waterways will be developed at Varanasi and Patna. A Regional Centre of Excellence is also being developed at Dibrugarh in Assam. These initiatives are expected to improve operational reliability and generate skilled employment across the sector.
The Budget has also proposed a Coastal Cargo Promotion Scheme to incentivise a modal shift from road and rail to waterways with the aim of increasing the share of inland waterways and coastal shipping from 6 percent to 12 percent by 2047. To strengthen multimodal integration new Dedicated Freight Corridors connecting Dankuni in the east to Surat in the west have been announced. These corridors will significantly enhance port connectivity cargo evacuation efficiency and industrial logistics while reducing pressure on road and rail transport.
Further measures include indigenisation of seaplane manufacturing supported by a Viability Gap Funding scheme to improve last mile connectivity promote tourism and enhance access to remote and island regions including the Andaman and Nicobar Islands and Lakshadweep.
To promote Indian ship ownership the Budget has extended the tax deduction period for units in GIFT IFSC and Offshore Banking Units from 10 to 20 consecutive years within a 25 year span. The sunset clause for customs duty exemption on import of small vessels has been extended till March 2028 while the exemption on large vessels has been permanently removed. These steps are expected to encourage Indian flagging fleet expansion and tonnage growth.
The Budget also places strong emphasis on Purvodaya with focused initiatives for eastern and northeastern India including development of an East Coast Industrial Corridor creation of five tourism destinations deployment of 4,000 e buses and a dedicated scheme for Buddhist Circuits across Assam Arunachal Pradesh Sikkim and other northeastern states. Sarbananda Sonowal said these initiatives honour India’s spiritual heritage while transforming the region into a hub of culture commerce and connectivity.
Summing up Sarbananda Sonowal said the Union Budget positions waterways shipping shipbuilding and container manufacturing as strategic enablers of India’s logistics and trade competitiveness. He said the Budget is instrumental in propelling Bharat towards becoming a leading global maritime superpower by balancing ambition with inclusion and choosing reform and action to drive holistic national development.
