Goa's Logistics Community Welcomes Maritime Focus in Union Budget 2026 with Measured Optimism
Finance Minister Nirmala Sitharaman's maritime-focused Union Budget for 2026-27, which prominently features initiatives for inland waterways, seaplane connectivity, ship-repair hubs, and last-mile logistics, has stirred a sense of cautious optimism within Goa's logistics and shipping community. The budget's emphasis on water-based transport is seen as a positive directional shift, though stakeholders emphasize the need for detailed scrutiny and broader implementation.
Industry Leaders Acknowledge Positive Direction but Seek Clarity
Anthony Gaskel, director at Sentrans Shipping Pvt Ltd, expressed that the budget is "definitely a step in the right direction" and highlights the government's growing importance on water transport, including inland waterways and coastal shipping. "We'll need to study the details with our members and get their feedback," Gaskel added, reflecting the industry's wait-and-watch approach before full endorsement.
Coastal Cargo Promotion Scheme: Aims and Limitations
The Budget introduces a Coastal Cargo Promotion scheme designed to incentivize a modal shift from rail and road to waterways. This ambitious initiative aims to double the share of inland waterways and coastal shipping in India's cargo movement from the current 6% to 12% by the year 2047. However, industry experts point out specific limitations that could impact its effectiveness.
Tamal Roy, group president at J M Baxi Group, noted that the scheme currently covers only specified inland waterway routes and does not extend to India's coastal shipping routes. Roy described the announcements as "baby steps" towards promoting inland waterways, indicating that more comprehensive measures are needed for substantial impact.
Critical Infrastructure Needs for Goa's Ports
Roy emphasized that for the scheme to be truly beneficial, it must include coastal routes directly connecting Indian port to Indian port. Beyond subsidies, he highlighted the urgent need for dedicated coastal berths at Goa or Mormugao port, similar to those available at other west coast ports. "Dedicated coastal berths require minimal customs paperwork and intervention," Roy stated, underscoring how such infrastructure could streamline operations and reduce logistical bottlenecks.
Long-Term Benefits and Historical Context
The sustained investments and policy support in logistics infrastructure and inland waterways are expected to enhance multimodal connectivity, improve cargo movement efficiency, and promote sustainable transport solutions. These developments align with long-standing appeals from Goa's logistics players, who have advocated for such measures over five decades.
States with coastal access, ports, and inland waterways, like Goa, stand to gain significantly through increased industrial activity and economic growth. Additionally, barge operators and other maritime service providers could see expanded opportunities if the initiatives are implemented effectively.
Caution from Past Experiences
Roy also issued a note of caution, referencing previous initiatives such as a coastal cargo reimbursement scheme that failed to gain significant traction. This history underscores the importance of examining the broader policy landscape and ensuring that new schemes are designed with practical, enforceable mechanisms to avoid past pitfalls.
The Union Budget 2026-27's maritime focus represents a potential turning point for Goa's logistics sector, but its success will hinge on detailed execution, inclusive policy coverage, and the development of critical port infrastructure to fully harness the benefits of water-based transport.
